Adjusting the Inventory Account

Adjusting the Inventory Account - used, two separate...

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Adjusting the Inventory Account Under the periodic system of accounting for inventory, the inventory account's balance remains  unchanged throughout the accounting period and must be updated after a physical count determines  the value of inventory at the end of the accounting period. The inventory account's balance may be  updated with adjusting entries or as part of the closing entry process. When adjusting entries are 
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Unformatted text preview: used, two separate entries are made. The first adjusting entry clears the inventory account's beginning balance by debiting income summary and crediting inventory for an amount equal to the beginning inventory balance....
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This note was uploaded on 11/14/2011 for the course ACCT 1310 taught by Professor Staff during the Fall '10 term at Texas State.

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