Nix'It Company's ledger on July 31, its fiscal year-end, includes the following selected accounts that have normal balances (Nix'lt uses the perpetual inventory system). Merchandise inventory $ 45,800 Sales returns and allowances $ 4,900T. Nix, Capital 131,300 Cost of goods sold 109,800T. Nix, Withdrawals 7,000 Depreciation expense 11,900Sales 162,600 Salaries expense 40,500Sales discounts 4,500 Miscellaneous expenses 5,000A physical count of its July 31 year-end inventory discloses that the cost of the merchandise inventory still available is $43,850Record the entry to close temporary revenue and account with a credit balance.

Question

Callie Palmer

Business

27 August, 23:09

Nix'It Company's ledger on July 31, its fiscal year-end, includes the following selected accounts that have normal balances (Nix'lt uses the perpetual inventory system). Merchandise inventory $ 45,800 Sales returns and allowances $ 4,900T. Nix, Capital 131,300 Cost of goods sold 109,800T. Nix, Withdrawals 7,000 Depreciation expense 11,900Sales 162,600 Salaries expense 40,500Sales discounts 4,500 Miscellaneous expenses 5,000A physical count of its July 31 year-end inventory discloses that the cost of the merchandise inventory still available is $43,850Record the entry to close temporary revenue and account with a credit balance.

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Caleb Bolton · Answer 1

Nix'It Company

Close Revenue

DR CR

Net Sales (162,600-4900) $157,700

Income Summary 157,700

Close Expenses Account

Income Summary 171,700

Cost of Goods sold 109,800

Depreciation expenses 11,900

Salaries expenses 40,500

Miscellaneous expenses 5,000

sales discount 4,500

Close Income Summary account

Retained earnings 14,000

Income summary account (157,700-171,700) 14,000

Close Withdrawal

Nix, Capital 7,000

Nix withdrawal 7,000