What were the begining and ending balances for MERCHANDISE INVENTORY when $169,000 was recorded in the debit column and $193,434 was in the credit column on the line for the INCOME SUMMARY account
To find the beginning and ending balances for the Merchandise Inventory account, we need to look at the changes recorded in the debit and credit columns of the Income Summary account.
1. Identify the changes in the debit column:
The amount recorded in the debit column indicates an increase in the Merchandise Inventory account. In this case, it is $169,000.
2. Identify the changes in the credit column:
The amount recorded in the credit column indicates a decrease in the Merchandise Inventory account. In this case, it is $193,434.
To calculate the beginning and ending balances:
Beginning Balance = Ending Balance + Debit Changes - Credit Changes
Let's substitute the given values:
Beginning Balance = Ending Balance + $169,000 - $193,434
Now, solve the equation for the Ending Balance:
Ending Balance = Beginning Balance - Debit Changes + Credit Changes
Since we don't have the beginning balance, we can only calculate the ending balance using the given information. The formula will be:
Ending Balance = Beginning Balance + $169,000 - $193,434
To determine the beginning balance, you would need additional information such as the ending balance for the previous period or any other transactions affecting the Merchandise Inventory account.