Chapter 5—Accounting for Merchandising Operations
The adjusting entry involves adjusting Merchandise Inventory and Cost of Goods Sold. An example follows of the adjusting entry to adjust if book amount is higher than the inventory amount determined to be on hand. The entry is a debit Cost of Goods Sold and credit Merchandise Inventory. Closing Entries are completed at the end of the fiscal year are journalized into the general journal and ... ................
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