In: Accounting
The inventory ledger account balance on June 30, 2019, was $15,300, and net realisable value for each product line exceeded the cost. The cost of inventory on hand June 30, 2019, determined by physical count, however, was only $15,156. In investigating the reasons for the discrepancy, Boodja-Dooga Ltd discovered the following.
Required
Prepare any journal entries required on June 30, 2019, to correct any errors and to adjust the inventory account.
Date |
Account |
Post Ref |
Debit |
Credit |
2019 |
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To record reversal of error in recording of sales of item on FOB Destination shipping terms |
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To record items “sold” back into inventory |
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To record inventory lost or missing |