Question

Madison Company's perpetual inventory records indicate that $530,470 of merchandise should be on hand on October 31. The physical inventory indicates that $505,940 is actually on hand.

Answer 1

$24530 is recorded as additional inventory entry at the end of the period in the journal

Step-by-step explanation:

The perpetual inventory records is one record that accommodates an additional inventory entry at the end of a period which in this case is October 31. this additional inventory entry is the difference derived from the comparison of the Physical count of the inventory to the inventory balance on the unadjusted balance on the trial inventory.

This difference is then entered at the end of a period in the inventory journal and the value is = $530470 - $505940 = $24530

Answer 2

$24,530

Step-by-step explanation:

Journal

Oct 31

Dr Cost of Merchandise sold $24,530

Cr Merchandise Inventory $24,530

$530,470-$505,940 =$24,530

The difference between MERCHANDISE That should be on hand and physical inventory indicating MERCHANDISE that is actually on hand.