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Merchandise inventory Retained earnings Dividends Sales Sales discounts $ 39,800 Sales returns and allowances 119,300 Cost of goods sold 7,000 Depreciation expense 159,400 Salaries expense 3,300 Miscellaneous expenses $ 6,100 106,200 10,700 34,500 5,000 A physical count of its July 31 year-end inventory discloses that the cost of the merchandise inventory still available $38,450. QS 4-10 Closing entries LO P3 Prepare journal entries to close the balances in temporary revenue and expense accounts. Remember to consider the ent shrinkage from QS 4-9. (The solution from QS 4-9 is required to complete this question.) View transaction list Journal entry worksheet < 1 2 > Record the entry to close the income statement accounts with credit balances 

          Merchandise inventory
Retained earnings
Dividends
Sales
Sales discounts
$ 39,800 Sales returns and allowances
119,300 Cost of goods sold
7,000 Depreciation expense
159,400 Salaries expense
3,300 Miscellaneous expenses
$ 6,100
106,200
10,700
34,500
5,000
A physical count of its July 31 year-end inventory discloses that the cost of the merchandise inventory still available
$38,450.
QS 4-10 Closing entries LO P3
Prepare journal entries to close the balances in temporary revenue and expense accounts. Remember to consider the ent
shrinkage from QS 4-9. (The solution from QS 4-9 is required to complete this question.)
View transaction list
Journal entry worksheet
< 1 2 >
Record the entry to close the income statement accounts with credit balances
Show more…
Merchandise inventory Retained earnings Dividends Sales Sales discounts 39,800 Sales returns and allowances 119,300 Cost of goods sold 7,000 Depreciation expense 159,400 Salaries expense 3,300 Miscellaneous expenses 6,100 106,200 10,700 34,500 5,000 A physical count of its July 31 year-end inventory discloses that the cost of the merchandise inventory still available 38,450. QS 4-10 Closing entries LO P3 Prepare journal entries to close the balances in temporary revenue and expense accounts. Remember to consider the ent shrinkage from QS 4-9. (The solution from QS 4-9 is required to complete this question.) View transaction list Journal entry worksheet < 1 2 > Record the entry to close the income statement accounts with credit balances

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Horngren’s Cost Accounting
Horngren’s Cost Accounting
Srikant M. Datar, Madhav V. Rajan 16th Edition
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$6,100 106,200 10,700 34,500 5,000 $39,800 Sales returns and allowances Merchandise inventory 119,300 Cost of goods sold Retained earnings 7,000 Depreciation expense Dividends 159,400 Salaries expense Sales 3,300 Miscellaneous expenses Sales discounts A physical count of its July 31 year-end inventory discloses that the cost of the merchandise inventory still available is $38,450. QS 4-10 Closing entries LO P3 Prepare journal entries to close the balances in temporary revenue and expense accounts. Remember to consider the en shrinkage from QS 4-9. (The solution from QS 4-9 is required to complete this question.) View transaction list Journal entry worksheet Record the entry to close the income statement accounts with credit balances
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Transcript

-
0:00 Hello everyone.
00:01 So the question says that we need to prepare general entries to close the balances in temporary revenues and expenses account.
00:09 So general entries would be on july 1 july 31st, sales account debit by $160 ,200 and income summary credit by $160 ,200.
00:47 Now again on july 31st, entry would be income summary debit by $165 ,900, sales discount, credit by $6 ,500 sales returns and allowances, credit, sorry, there's a confusion over here.
01:33 The amount for sales discount will be 4 ,700 and for sales return and allowances will be 6 ,500.
01:42 Now cost of goods sold will be $106 ,900...
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