This document discusses planning and recording merchandise inventory adjustments. It explains how to analyze and record an adjustment when the ending inventory is greater than the beginning inventory. Specifically, it shows debiting merchandise inventory for the adjustment amount and crediting an income summary account. The document also provides a term review defining merchandise inventory.

1. LESSON 14-3
Planning and Recording a
Merchandise Inventory
Adjustment
CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning

2. 2
MERCHANDISE INVENTORY
CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning
page 415
LESSON 14-3

3. 3
ANALYZING AND RECORDING A
MERCHANDISE INVENTORY ADJUSTMENT
page 416
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 © 2009 South-Western, Cengage Learning
LESSON 14-3

4. 4
ANALYZING AN ADJUSTMENT WHEN ENDING
MERCHANDISE INVENTORY IS GREATER THAN
page 417
BEGINNING MERCHANDISE INVENTORY
Jan. 1 Bal.
Adj. (d)
(New Bal.
Merchandise Inventory
294,700.00
4,200.00
298,900.00)
Income Summary
Adj. (d)
CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning
4,200.00
LESSON 14-3

5. 5
TERM REVIEW
page 418
 merchandise inventory
CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning
LESSON 14-3

6. 5
TERM REVIEW
page 418
 merchandise inventory
CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning
LESSON 14-3