Ask Question
20 May, 19:30

Use the following information for the Quick Study below.

[The following information applies to the questions displayed below.]

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 $ 45,300 Sales returns and allowances $ 5,000

T. Nix, Capital 130,300 Cost of goods sold 109,500

T. Nix, Withdrawals 7,000 Depreciation expense 11,800

Sales 162,100 Salaries expense 40,000

Sales discounts 4,400 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 $43,400.

+3
Answers (1)
  1. 20 May, 19:52
    0
    Nix'It Company's Journal entries

    July 31

    Dr Sales 162,100

    Cr Incomes summary 162,100

    (To close sales revenue to income summary recorded)

    July 31

    Dr Income summary 175,600

    Cr Sales returns and allowances $ 5,000

    Cr Cost of goods sold 109,600

    Cr Depreciation expense 11,800

    Cr Salaries expense 40,000

    Cr Sales discounts 4,400

    Cr Miscellaneous expenses 5,000

    (To close expenses account recored)

    Explanation:

    Cost of goods sold + (Merchandise inventory still available-Merchandise inventory)

    109,500 + (45,400-45,300)

    =109,500+100

    =109,600
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “Use the following information for the Quick Study below. [The following information applies to the questions displayed below.] Nix'It ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers