Question

The beginning inventory of Norcal Wholesalers was $141,000, and the ending inventory is $118,519. What entries...

The beginning inventory of Norcal Wholesalers was $141,000, and the ending inventory is $118,519. What entries are needed at the end of the fiscal period to adjust Merchandise Inventory?

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Homework Answers

Answer #1
  • Since no data regarding Amount of purchases are provided, the question is of apparent ‘periodic’ system.
  • Following entries will be required:

Accounts title

Debit

Credit

Income Summary

$        141,000.00

   Inventory

$        141,000.00

(to eliminate Beginning inventory balance)

Inventory

$        118,519.00

   Income Summary

$        118,519.00

(to record cost of ending inventory)

  • Comment in case of any confusion regarding above answer.
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