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Name:

Exercise:
Course:
Date:
234,890
13,420
12,800
15,630
8,540
(10,438)
(10,520)
1,500
2,600
237,392
(InventoriabIe Costs-Error Adjustments) Craig Company asks you to review its December 31, 2007, inventory values and prepa
necessary adjustments to the books. The following information is given to you.
Adj entry need account for credit. nvontory needs to be adjusted +
Dec 31
No entry needed. Adjustment of nventory +
Return and Allowance
A/R
ncluded in inventory was $10,438 of inventory held by Craig on consignment from Jackel ndustries.
No entry needed. Consignment is not held on inventory. Adjustment of nventory -
ncluded in inventory is merchandise sold to Kemp f.o.b. shipping point. This merchandise was shipped after it was counted. The invoice was prepared and re
for $18,900 on December 31. The cost of this merchandise was $10,520, and Kemp received the merchandise on January 5.
No entry needed. Title transefered at common carrier . Adjustment of nventory -
Exercise 8-5, Recording Bad Debts
Acc 422
Not included in inventory is $8,540 of merchandise purchased from Glowser ndustries. This merchandise was received on December 31 after the inventory h
The invoice was received and recorded on December 30.
Accounts payable
No entry requried..Beginning balance
Not included in the physical count of inventory is $13,420 of merchandise purchased on December 15 from Browser. This merchandise was shipped f.o.b. sh
December 29 and arrived in January. The invoice arrived and was recorded on December 31.
No entry needed But an adjustment + to invontory
1. Craig uses the periodic method of recording inventory. A physical count reveals $234,890 of inventory on hand at December 31, 2007.
Accounts recievable
Adj entry need to match period. Title transfer took place in 2008. No change in nvont
Adj entry need to match period. Title transfer took place in 2007. No change in nvont
Dec 31 nventory
ncluded in inventory is merchandise sold to Champy on December 30, f.o.b. destination. This merchandise was shipped after it was counted. The invoice wa
recorded as a sale on account for $12,800 on December 31. The merchandise cost $7,350, and Champy received it on January 3.
Dec 31 Sales
Excluded from inventory was a carton labeled "Please accept for credit. This carton contains merchandise costing $1,500 which had been sold to a custome
entry had been made to the books to reflect the return, but none of the returned merchandise seemed damaged.
ncluded in inventory was merchandise received from Dudley on December 31 with an invoice price of $15,630. The merchandise was shipped f.o.b. destinat
which has not yet arrived, has not been recorded.
Determine the proper inventory balance for Craig Company at December 31, 2007.

Name:
Exercise:
Course:
Date:
2005 2006 2007
Sales 290,000 360,000 410,000
Sales returns 11,000 13,000 20,000
Net sales 279,000 347,000 390,000
Beginning inventory 20,000 32,000 ?
Ending inventory 32,000 ?
Purchases 260,000 298,000
Purchase returns and
allowances
5,000 8,000 10,000
Transportation-in 8,000 9,000 12,000
Cost oI goods sold 233,000 256,000 293,000
Gross proIit on sales 46,000 91,000 97,000
Exercise 8-5, Recording Bad Debts
Acc 422
(Determining Merchandise Amounts-Periodic) Two or more items are omitted in each of the following tabulations of income stat
in the amounts that are missing.