Exercise 8-5 SHOW LIST OF ACCOUNTS LINK TO TEXT No. Account Titles and Explanati
ID: 2501116 • Letter: E
Question
Exercise 8-5
SHOW LIST OF ACCOUNTS
LINK TO TEXT
No.
Account Titles and Explanation
Debit
Credit
credit sales venue at what amount??
debitaccounts recievable at what amount??
Exercise 8-5
Craig Company asks you to review its December 31, 2014, inventory values and prepare the necessary adjustments to the books. The following information is given to you.1. Craig uses the periodic method of recording inventory. A physical count reveals $330,960 of inventory on hand at December 31, 2014. 2. Not included in the physical count of inventory is $18,909 of merchandise purchased on December 15 from Browser. This merchandise was shipped f.o.b. shipping point on December 29 and arrived in January. The invoice arrived and was recorded on December 31. 3. Included in inventory is merchandise sold to Champy on December 30, f.o.b. destination. This merchandise was shipped after it was counted. The invoice was prepared and recorded as a sale on account for $18,035 on December 31. The merchandise cost $10,356, and Champy received it on January 3. 4. Included in inventory was merchandise received from Dudley on December 31 with an invoice price of $22,023. The merchandise was shipped f.o.b. destination. The invoice, which has not yet arrived, has not been recorded. 5. Not included in inventory is $12,033 of merchandise purchased from Glowser Industries. This merchandise was received on December 31 after the inventory had been counted. The invoice was received and recorded on December 30. 6. Included in inventory was $14,707 of inventory held by Craig on consignment from Jackel Industries. 7. Included in inventory is merchandise sold to Kemp f.o.b. shipping point. This merchandise was shipped after it was counted. The invoice was prepared and recorded as a sale for $26,630 on December 31. The cost of this merchandise was $14,823, and Kemp received the merchandise on January 5. 8. Excluded from inventory was a carton labeled “Please accept for credit.” This carton contains merchandise costing $2,114 which had been sold to a customer for $3,663. No entry had been made to the books to reflect the return, but none of the returned merchandise seemed damaged. Your answer is incorrect. Try again. Determine the proper inventory balance for Craig Company at December 31, 2014.
Inventory balance as on December 31, 2014
$
SHOW LIST OF ACCOUNTS
LINK TO TEXT
Your answer is partially correct. Try again. Prepare any correcting entries to adjust inventory to its proper amount at December 31, 2014. Assume the books have not been closed. (If no entry is required, select "No entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.)No.
Account Titles and Explanation
Debit
Credit
1.No entry
2.no entry
3.credit sales venue at what amount??
debitaccounts recievable at what amount??
4.Credit what and amount? Debit accounts payable but amount?
5.no entry
6.no entry
7.no entry
8.credit sales returns and allowences but what amount? debit accounts recievable what amount?
Explanation / Answer
a.
Inventory December 31, 2014 (unadjusted)
$330,960.00
Transaction 2
$18,909.00
Transaction 3
$0.00
Transaction 4
$0.00
Transaction 5
$12,033.00
Transaction 6
-$14,707.00
Transaction 7
-$14,823.00
Transaction 8
$2,114.00
Inventory December 31, 2014 (adjusted)
$334,486.00
b.
No.
Account Titles and Explanation
Debit
Credit
3
Sales
$18,035
Accounts Receivable
$18,035
4
Purchases (Inventory)
$22,023
Accounts Payable
$22,023
8
Sales Returns
$3,663
Accounts Receivable
$3,663
Inventory December 31, 2014 (unadjusted)
$330,960.00
Transaction 2
$18,909.00
Transaction 3
$0.00
Transaction 4
$0.00
Transaction 5
$12,033.00
Transaction 6
-$14,707.00
Transaction 7
-$14,823.00
Transaction 8
$2,114.00
Inventory December 31, 2014 (adjusted)
$334,486.00
Related Questions
drjack9650@gmail.com
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.