Question

Last year bell-bottom jeans were fashionable and this year bootcut jeans are. A retail company's inventory has 875 bell-bottom jeans that cost $17.25 each and could be replaced for $19.50. The inventory also includes 1,500 bootcut jeans that cost $20.25 each and could be replaced for $18.25. Prepare the journal entry that would be used to make the adjustment, and show the effects of the adjustment on the accounting equation

General Journal	Debit	Credit
(Click to select)Notes payableEquipmentCashContributed capitalInventoryCost of goods soldAccounts payableSupplies
(Click to select)CashSuppliesInventoryNotes payableCost of goods soldAccounts payableEquipmentContributed capital

Assets                     =		Liabilities	+             Stockholders' Equity
Inventory	(Click to select)+3000NE-1500+1500-3000		Cost of goods sold	(Click to select)[phone]NE+3000

Answer 1