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    Natalia44's Avatar
    Natalia44 Posts: 6, Reputation: 1
    New Member
     
    #1

    Mar 26, 2009, 12:23 PM
    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
    pready's Avatar
    pready Posts: 3,197, Reputation: 207
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    #2

    Mar 26, 2009, 12:38 PM

    1) Debit COGS or Shrinkage Account, Credit Inventory

    2) Debit the Revenue Account, Credit Income Summary Account

    3) Debit Income Summary Account, Credit COGS

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