Presented below is information related to Sunland Company, owned
by D. Flamont, for the month of January 2017.
|Ending inventory per perpetual records||$22,800||Insurance expense||$11,500|
|Ending inventory actually on hand||17,800||Rent expense||20,200|
|Cost of goods sold||211,000||Salaries expense||55,800|
|Freight out||7,100||Sales discounts||9,100|
|Sales returns and allowances||13,900|
1. Prepare the necessary adjusting entry for inventory.
2. Prepare the necessary closing entries. D. Flamont did not withdraw any cash during the month of January.
|Date||account and explanation||Debit||Credit|
|Cost of goods sold (22800-17800)||5000|
|Cost of goods sold||216000|
|Sales return and allowance||13900|
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