19 Dwight Howard, 2004-present. Everything was going so well for Howard in his first seven NBA seasons. He was popular, a well-liked endorser and dunk contest champion. He was the three-time Defensive Player of the Year, a three-time rebounding champion and the runner-up for 2010-11 MVP.
Prepare an adjustment for merchandise inventory under the periodic inventory system. The adjustment for merchandise inventory under the periodic inventory system re-. quires two adjusting entries. In the first adjusting entry (to remove the beginning in-. ventory), debit Income Summary and credit Merchandise Inventory. In the second. adjusting entry (to enter the ending inventory), debit Merchandise Inventory and. credit Income Summary. 3. Prepare an adjustment of unearned revenue. For revenue received in advance, an adjustment is required to separate the portion. that has been earned from the portion that is unearned.
(1) Note that the only General Ledger Inventory related account that had any transactions posted during the year was the Purchases Account. The Merchandise Inventory Account has the beginning balance and no other transactions posted and the Cost Of Goods Sold Account likewise has no transactions posted. (2) Without ending inventory balances and cost of goods sold balances during the year, we are unable to prepare monthly (interim) financial statements without performing a physical count and making adjusting entries.