Presented below is information related to Taylor Co. for the month of January 2014.
|
Ending inventory per perpetual records |
21,600 |
Insurance expense |
12,000 |
|
Ending inventory actually on hand |
21,000 |
Rent expense |
20,000 |
|
Cost of goods sold |
208,000 |
Salaries and wages expense |
59,000 |
|
Freight-out |
7,000 |
Sales discounts |
8,000 |
|
Sales returns and allowances |
13,000 |
Sales revenue |
378,000 |
Instructions:
(a) Prepare the necessary adjusting entry for inventory. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)
(b) Prepare the necessary closing entries.