Help with end of year adjusting entries?
I'm having trouble with these following AJE's and I'm not sure if my answers are correct.
(CMC uses a perpetual inventory system)
1. Wages earned by employees during December and to be paid in January are $33,875; associated payroll taxes on these wages are $2,710.
2. You discover that a product sale was made and recorded in December for $128,600; the product had not yet been shipped. The cost of the product was $68,742.
- Don GLv 71 month agoFavorite Answer
(1) DR Wages 33,875 DR Payroll tax 2,710 CR Accrued Wages 33,875 CR Accrued P/R Tax 2,710
(2) DR Sales 128,600 DR Inventory 68,742 CR Accts Recv 128,600 CR Cost of Goods Sold 68,742