Nix'It Company's ledger on July 31, its fiscal year-end, includes the following selected accounts that have normal balances (Nix'It uses the perpetual inventory system).
Merchandise inventory $ 44,800 Sales returns and allowances $ 5,100
Retained earnings 129,300 Cost of goods sold (excluding shrinkage) 109,200
Dividends 7,000 Depreciation expense 11,700
Sales 161,600 Salaries expense 39,500
Sales discounts 4,300 Miscellaneous expenses 5,000
- A physical count of its July 31 year-end inventory discloses that the cost of the merchandise inventory still available is $42,950.
- Prepare journal entries to close the balances in temporary revenue and expense accounts. Remember to consider the entry for shrinkage.
Nix'It Company's ledger on July 31, its fiscal year-end, includes the following selected accounts that have normal balances (Nix'It uses the perpetual inventory system). Merchandise inventory $ &n...