Adjustment for Merchandise Inventory Using T Accounts: Periodic Inventory System
Ibby Smith owns and operates Ibby’s Ice Cream Cones. Her beginning inventory as of January 1, 20--, was $45,000, and her ending inventory as of December 31, 20--, was $57,000. Set up T accounts for Merchandise Inventory and Income Summary and perform the year-end adjustment for Merchandise Inventory.
Use the labels shown.
(a) Remove the beginning balance in Merchandise Inventory.
(b) Add the new balance in Merchandise Inventory.
