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    Xenfire's Avatar
    Xenfire Posts: 0, Reputation: 1
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    #1

    Jan 8, 2011, 10:59 AM
    Adjusting Merchandise Inventory on the Worksheet
    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's Avatar
    meLay0828 Posts: 7, Reputation: 1
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    #2

    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's Avatar
    Just Looking Posts: 1,610, Reputation: 480
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    #3

    Jan 20, 2011, 08:17 AM

    Credit Cost of Goods Sold
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