At the end of the year, the business counts and inspects its ending inventory of products on hand, which is stored in its warehouse and retail sales areas. Usually, employees discover some damaged and spoiled products that can't be sold. This year is no exception. The cost of spoiled and damaged products that will have to be thrown away is $26,300. What adjusting entry is made?
At the end of the year, after all year-end adjusting entries have been made and posted, the balances in the revenue and expense accounts of the business are as follows:
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Cost of Goods Sold Expense
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$2,725,000
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Selling & Administrative Expenses
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$1,228,500
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Interest Expense
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$175,000
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Income Tax Expense
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$138,000
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What entry is made to close the nominal accounts and enter the profit or loss for the year?