Juan Morales Company had the following account balances at year-end: Cost of Goods Sold $60,000, Inventory $15,000, Operating Expenses $29,000,…
February 19th, 2023
Juan Morales Company had the following account balances at year-end: Cost of Goods Sold ,000, Inventory $15,000, Operating Expenses ,000, Sales Revenue 5,000, Sales Discounts $1,200, and Sales Returns and Allowances $1,700. A physical count of inventory determines that merchandise inventory on hand is $13,900.a) Prepare the adjusting entry necessary as a result of the physical count.b) Prepare closing entries.