Question

Presented below is information related to Taylor Co. for the month of January 2014. Ending inventory per Insurance expense $ 12,680 perpetual records $ 23,490 Rent expense 20,260 Ending inventory actually Salaries and wages expense 57,100 on hand 22,930 Sales discounts 10,950 Cost of goods sold 227,250 Sales returns and allowances 15,390 Freight-out 7,640 Sales revenue 411,410(a) Prepare the necessary adjusting entry for inventory.(b) Prepare the necessary closing entries

Answer 1

Answer: The answer is given below

Step-by-step explanation:

a. The necessary adjusting entry for inventory has been prepared and attached.It should be noted that the inventory was calculated as:

= $23,490 - $22,930

= $560

(b) The necessary closing entries has also been prepared and attached. During the calculation, it should be noted that the cost of goods sold was given as:

= 227250 + 560

= 227810

Check the attachment for the table.