Question

VIUNON-ps%253A%252F%252Fkei... HW Saved Help Save & Ch ! Required information [The following information applies to the questions displayed below.) Nix'lt Company's ledger on July 31, its fiscal year-end, includes the following selected accounts that have normal balances (Nix'It uses the perpetual inventory system). Merchandise inventory T. Nix, Capital T. Nix, Withdrawals Sales Sales discounts $ 38,300 116,300 7,000 160,000 3,000 Sales returns and allowances Cost of goods sold Depreciation expense Salaries expense Miscellaneous expenses $ 6,400 105,300 10,400 33,00 5,000 A physical count of its July 31 year-end inventory discloses that the cost of the merchandise inventory still available is $37,100. Prepare journal entries to close the balances in temporary revenue and expense accounts. Remember to consider the entry for shrinkage from QS 5-9. (The solution from QS 5-9 is required to complete this question.) View transaction list < Prex 24 of 28 Next > a earch

Answer 1

Date	Accounts titles and Explanation	Debit (in $)	Credit (in $)
July 31	Sales	$ 160,000
	Income summary		$ 160,000
	(To close the Income statement accounts with Cr. Bal. )
July 31	Income summary   - Bal. Fig.	$ 164,300
	Sales returns and allowances		$ 6,400
	Sales discount		$ 3,000
	Cost of goods sold              ( $ 105,300 + ( $ 38,300 (-) $ 37,100 )		$ 106,500
	Depreciation expense		$ 10,400
	Salaries expense		$ 33,000
	Miscellaneous expenses		$ 5,000
	(To close the Income statement accounts with Dr. Bal. )