LESSON 14-3
Planning and Recording a
Merchandise Inventory
Adjustment
CENTURY 21 ACCOUNTING © Thomson/South-Western
2
MERCHANDISE INVENTORY
CENTURY 21 ACCOUNTING © Thomson/South-Western
page 415
LESSON 14-3
3
ANALYZING AND RECORDING A MERCHANDISE
page 416
INVENTORY ADJUSTMENT
3
2
3
1
1. Write the debit amount.
2. Write the credit amount.
3. Label the two parts of this
adjustment with a small letter d
in parentheses.
CENTURY 21 ACCOUNTING © Thomson/South-Western
LESSON 14-3
ANALYZING AN ADJUSTMENT WHEN ENDING
MERCHANDISE INVENTORY IS GREATER THAN
BEGINNING MERCHANDISE INVENTORY
Jan. 1 Bal.
Adj. (d)
(New Bal.
4
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Merchandise Inventory
294,700.00
4,200.00
298,900.00)
Income Summary
Adj. (d)
CENTURY 21 ACCOUNTING © Thomson/South-Western
4,200.00
LESSON 14-3