Necessary adjusting entry for inventory


Presented is information related to Rogers Co. for the month of January 2011.

Ending inventory per perpetual records $21,600 Ending inventory actually on hand 21,000 Cost of goods sold 218,000 Freight-out 7,000 Insurance expense 12,000 Rent expense 20,000 Salary Expense 61,000 Sales Discounts 10,000 Sales Returns and Allowances 13,000 Sales 350,000

(a) Prepare the necessary adjusting entry for inventory.

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Accounting Basics: Necessary adjusting entry for inventory
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