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Question - Presented below is information related to Sheridan Company, owned by D. Flamont, for the month of January 2017.
Ending inventory per perpetual records $22,800
Insurance expense $11,700
Ending inventory actually on hand 18,600
Rent expense 20,600
Cost of goods sold 205,000
Salaries expense 55,100
Freight out 6,500
Sales discounts 9,600
Sales returns and allowances 12,900S
Sales 375,000
Required -
1. Prepare the necessary adjusting entry for inventory.
2. Prepare the necessary closing entries. D. Flamont did not withdraw any cash during the month of January.
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