A Level Accounting (9706)•9706/13/M/J/25
Explanation
Adjusting post-year-end inventory count for sales and returns Steps:
- Identify transactions between 31 Dec 2024 and 5 Jan 2025: sale on 3 Jan (reduces inventory by its cost) and return on 4 Jan (increases inventory by $1020, but goods were sold pre-year-end so not in 31 Dec inventory).
- Formula: Inventory at 31 Dec = Inventory at 5 Jan + Cost of 3 Jan sale - Cost of 4 Jan return.
- Inventory at 5 Jan = 1020.
- Cost of 3 Jan sale to Abdul missing (text cuts off after "The cost price of this inventory was"). Not enough information.
Final answer: Not enough information.
Topic: Preparation of financial statements
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