Ask Me Help Desk

Ask Me Help Desk (https://www.askmehelpdesk.com/forum.php)
-   Finance & Accounting (https://www.askmehelpdesk.com/forumdisplay.php?f=411)
-   -   Perpetual inventory system (https://www.askmehelpdesk.com/showthread.php?t=334244)

  • Mar 26, 2009, 12:23 PM
    Natalia44
    Perpetual inventory system
    The physical inventory at year-end disclosed a normal amount of inventory shrinkage
    My ans: debit AR and credit Cash is this the correct entry

    Make an entry to close the revenue account
    My ans: debit inventory and credit revenue is this the correct entry

    Made an entry at year-end to close the Cost of Goods Sold account
    My ans: debit inventory credit Cost of goods sold is this the correct entry
  • Mar 26, 2009, 12:38 PM
    pready

    1) Debit COGS or Shrinkage Account, Credit Inventory

    2) Debit the Revenue Account, Credit Income Summary Account

    3) Debit Income Summary Account, Credit COGS

  • All times are GMT -7. The time now is 05:02 AM.