Presented below is information related to Taylor Co. for the month of January 2014.
|
Ending inventory per
|
|
Insurance expense
|
$ 12,470
|
|
perpetual records
|
$ 27,720
|
Rent expense
|
22,140
|
|
Ending inventory actually
|
|
Salaries and wages expense
|
55,610
|
|
on hand
|
27,130
|
Sales discounts
|
10,220
|
|
Cost of goods sold
|
210,070
|
Sales returns and allowances
|
14,490
|
|
Freight-out
|
7,380
|
Sales revenue
|
414,950
|
(a) Prepare the necessary adjusting entry for inventory.
(b) Prepare the necessary closing entries.