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  • Adjusting Entries - Merchandising Company

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    Winaa Ahya
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    This document contains examples of adjusting entries for a merchandising company under both the income summary approach and cost of goods sold approach. The entries adjust inventory accounts at the beginning and end of 2015 to match the physical count, and adjust expense accounts like freight in, returns and allowances, and purchase discounts to properly record costs in the period incurred.

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    Adjusting Entries- Merchandising company

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    11. Adjusting Entries - Merchandising Company

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    This document contains examples of adjusting entries for a merchandising company under both the income summary approach and cost of goods sold approach. The entries adjust inventory accounts at the beginning and end of 2015 to match the physical count, and adjust expense accounts like freight in, returns and allowances, and purchase discounts to properly record costs in the period incurred.

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    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
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    22 views4 pages

    Adjusting Entries - Merchandising Company

    Uploaded by

    Winaa Ahya
    This document contains examples of adjusting entries for a merchandising company under both the income summary approach and cost of goods sold approach. The entries adjust inventory accounts at the beginning and end of 2015 to match the physical count, and adjust expense accounts like freight in, returns and allowances, and purchase discounts to properly record costs in the period incurred.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
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    of 4

    * Adjusting Entries

    MERCHANDISING COMPANY
    Merchandising Inventory
    Date Account and Explanation Ref Debit Kredit
    2015 31 Income Summary $ xxxx
    Dec Merchandise Inventory $xxxx
    (Adjusting for Merchandise
    Inventory on Jan 1, 2015)
    31 Merchandise Inventory $xxxx
    Income Summary $xxxx
    (Adjusting for Merchandise
    Inventory on Dec 31, 2015)

    * Income Summary Approach


    Date Account and Explanation Ref Debit Kredit
    2015 31 Cost of Good Sold $ xxxx
    Dec Merchandise Inventory $ xxxx
    (Adjusting for Merchandise
    Inventory on Jan 1, 2015)
    31 Merchandise Inventory $ xxxx
    Cost of Good Sold $ xxxx
    (Adjusting for Merchandise
    Inventory on Dec 31, 2015)
    31 Cost of Good Sold $ xxxx
    Purchased $ xxxx
    (Adjusting for Purchased
    Account)

    * Cost of Good Sold Approach


    Date Account and Explanation Ref Debit Kredit
    2015 31 Cost of Good Sold $ xxxx
    Dec Freight In $ xxxx
    (Adjusting for Freight In)
    31 Purchased Return & Allow. $ xxxx
    Cost of Good Sold $ xxxx
    (Adjusting for Purchased
    Return & Allow. Account)
    31 Purchase Discount $ xxxx
    Cost of Good Sold $ xxxx
    (Adjusting for Purchased
    Discount Account)

    * Cost of Good Sold Approach

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