“XYZ ask you to review its December 31, 2010, inventory values and prepare the necessary adjustments
to the books. The following information is given to you.

1.

Xyz uses the periodic
method of recording inventory. A physical count reveals $234,890 of
inventory on hand at December 31, 2014.

2.

Not included in the
physical count of inventory is $13,420 of merchandise purchased on
December 15 from Browser. This merchandise was shipped f.o.b. shipping point
on December 29 and arrived in January. The invoice arrived and was recorded
on December 31.

3.

Included in inventory
is merchandise sold to Champy on December 30, f.o.b. destination. This
merchandise was shipped after it was counted. The invoice was prepared and
recorded as a sale on account for $12,800 on December 31. The
merchandise cost $7,350, and Champy received it on January 3.

4.

Included in inventory
was merchandise received from Dudley on December 31 with an invoice price of
$15,630. The merchandise was shipped f.o.b. destination. The invoice, which
has not yet arrived, has not been recorded.

5.

Not included in
inventory is $8,540 of merchandise purchased from Glowser Industries.
This merchandise was received on December 31 after the inventory had been
counted. The invoice was received and recorded on December 30.

6.

Included in inventory
was $10,438 of inventory held by Xyz on consignment from Jackel
Industries.

7.

Included in inventory
is merchandise sold to Kemp f.o.b. shipping point. This merchandise was
shipped after it was counted. The invoice was prepared and recorded as a sale
for $18,900 on December 31. The cost of this merchandise was $10,520,
and Kemp received the merchandise on January 5.

8.

Excluded from
inventory was a carton labeled Please accept for credit. This carton contains
merchandise costing $1,500 which had been sold to a customer for $2,600.
No entry had been made to the books to reflect the return, but none of the
returned merchandise seemed damaged.

Prepare any correcting entries to adjust
inventory to its proper amount at December 31, 2010. Assume the books have not
been closed.
Debit Credit
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XYZ ask you to review
its December 31, 2010, inventory values and prepare the necessary adjustments
to the books. The following information is given to you.1.Xyz uses the periodic
method of recording inventory. A physical count reveals $234,890 of
inventory on hand at December 31, 2014.2.Not included in the
physical count of inventory is $13,420 of merchandise purchased on
December 15 from Browser. This merchandise was shipped f.o.b. shipping point
on December 29 and arrived in January. The invoice arrived and was recorded
on December 31.3.Included in inventory
is merchandise sold to Champy on December 30, f.o.b. destination. This
merchandise was shipped after it was counted. The invoice was prepared and
recorded as a sale on account for $12,800 on December 31. The
merchandise cost $7,350, and Champy received it on January 3.4.Included in inventory
was merchandise received from Dudley on December 31 with an invoice price of
$15,630. The merchandise was shipped f.o.b. destination. The invoice, which
has not yet arrived, has not been recorded.5.Not included in
inventory is $8,540 of merchandise purchased from Glowser Industries.
This merchandise was received on December 31 after the inventory had been
counted. The invoice was received and recorded on December 30.6.Included in inventory
was $10,438 of inventory held by Xyz on consignment from Jackel
Industries.7.Included in inventory
is merchandise sold to Kemp f.o.b. shipping point. This merchandise was
shipped after it was counted. The invoice was prepared and recorded as a sale
for $18,900 on December 31. The cost of this merchandise was $10,520,
and Kemp received the merchandise on January 5.8.Excluded from
inventory was a carton labeled Please accept for credit. This carton contains
merchandise costing $1,500 which had been sold to a customer for $2,600.
No entry had been made to the books to reflect the return, but none of the
returned merchandise seemed damaged.Prepare any correcting entries to adjust
inventory to its proper amount at December 31, 2010. Assume the books have not
been closed. Debit Credit12345678”