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View Full Version : Adjusting Merchandise Inventory on the Worksheet


Xenfire
Jan 8, 2011, 10:59 AM
The Merchandise Inventory has a debit balance of 255,673.84
The ending inventory is given and is 295,800.50

I assumed you had to debit the Merchandise Inventory account by the difference of the ending inventory and the merchandise inventory (40,126.66), but I don't know what account to credit in order to balance the adjustments column.

meLay0828
Jan 20, 2011, 07:54 AM
I think the you should debit the Merchandise Inventory, end with the amount given then credit Income Summary or Profit and Loss.

, that is what we usually do in our entries... :) I hope it helped.. :)

Just Looking
Jan 20, 2011, 08:17 AM
Credit Cost of Goods Sold