Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. case 1 - adjusting entries for merchandising activ

CASE 1 - ADJUSTING ENTRIES FOR MERCHANDISING ACTIVITIES. Oman Maxo Electronics Company - A...

60.1K

Verified Solution

Question

Accounting

CASE 1 - ADJUSTING ENTRIES FOR MERCHANDISING ACTIVITIES. Oman Maxo Electronics Company -

A Case study: Oman Maxo Electronics Company is engaged in merchandising business that sells electronic products and follows perpetual inventory system. The company exclusively sells laptops @ OMR 550 each. At the end of the year, the unadjusted books of records show that there are 8 laptops of OMR 4,400 (8 X 550), and OMR 9,000 in Cost of Goods Sold. The physical inventory count came to ________. ________ the number of physical inventory would be your number of birth month (Example: If January is your birth month, the number of physical inventory would be 1; If February is your birth month, the number of physical inventory would be 2 and so on. NOTE: Students must provide the proof of their birth month in the assignment answer sheet. You are Required to: 1. Identify the Overstatement / understatement of inventory. (1 Mark) 2. Pass necessary adjusting entry. (2 Marks) 3. Show the appropriate effect of adjustment in Companys books of records. (3 marks)

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students