question chapter 09 exercise 56 lo 9 3 you are auditing martha 39 s prison clothes i 4304063

Question

Chapter 09 Exercise 56 LO 9-3 You are auditing Martha's Prison Clothes, Inc., as of December 31, 2014. The inventory for orange jumpsuits shows 1,263 suits at $782 for a total of $987,666. When you look at the invoices for the jumpsuits, you see the following Inventory Unit Quantity Price Total Number Date 12732 11/22/13 1.000 765 765,000 12844 800 12/03/13 777 621,600 600 12905 12/28/13 782 469.200 Required a. Determine the adjusting entry, if any, for the cost of inventory at December 31, 2014. (In cases where no entry is required, please select the option “No adjusting journal entry required” for your answer to grade correctly. Leave no cells blank be certain to enter “0” wherever required. Omit the sign in your response.) Debit Credit General journal Cost of goods sold 3315 Inventory 3315 b-1. Would your answer to part (a) be different if you saw an invoice dated January 9, 2015, for 500 suits at $750? Yes No b-2. If yes, determine the adjusting entry. (In cases where no entry is required, please select the option “No adjusting journal entry required” for your answer to grade correctly. Leave no cells blank be certain to enter “0” wherever required. Omit the sign in your response.) General Journal Credit Debit Cost of goods sold Inventory