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omeli
2 months ago
7

The records of penny Co. Indicated that 415,000 of merchandise should be on hand December 31. The phyiscla inventory indicates t

hat 370,000 of merchandise is actually on hand
Business
1 answer:
marusya05 [3.7K]2 months ago
5 0

Response:

Refer to the explanation section

Clarification:

The disparity between the inventory count recorded and the actual count suggests that the goods in stock have either been sold or lost. For the sake of ongoing operations, it is presumed they have been sold. Accordingly, the journal entry to document the sale is -

December - 31       Cost of goods sold           Debit          45,000

                           ($415,000 - $370,000)

                                        Merchandise Inventory     Credit       45,000

                    (To record the sale of merchandise: adjusted)

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