|
Ending inventory per perpetual records
|
$21,600
|
Insurance expense
|
$12,000
|
|
Ending inventory actually on hand
|
21,000
|
Rent expense
|
20,000
|
|
Cost of goods sold
|
208,000
|
Salary expense
|
61,000
|
|
Freight-out
|
7,000
|
Sales discounts
|
10,000
|
| |
|
Sales returns and allowances
|
13,000
|
| |
|
Sales
|
350,000
|
Instructions
(a) Prepare the necessary adjusting entry for inventory.
(b) Prepare the necessary closing entries.