What is the adjusting journal entry under the periodic inventory method? -

While testing items in the December sales journal, you noted that shipping documents indicated that $50,000 in sales (cost of $36,000) were not actually shipped until January of the new year. The related inventory was counted and listed on the year-end inventory summary.

The $50,000 would have been recorded in December as follows..Debit $50,000 (Cash or A/R)Credit $50,000 (Sales Revenue)Debit $36,000 (Cost of Goods Sold)Credit $36,000 (Inventory)Since these items were not shipped until January, the adjusting entry would be this...Debit $50,000 (Sales Revenue)Credit $50,000 (Unearned Revenue)Debit $36,000 (Inventory)Credit $36,000 (Cost of Goods Sold)Note: Adjusting entries always involve one Balance Sheet account (Unearned Revenue and Inventory) and one Income Statement account (Sales Revenue and Cost of Goods Sold). They never affect Cash.In January when the items are shipped, the entry would be...Debit $50,000 (Unearned Revenue)Credit $50,000 (Sales Revenue)Debit $36,000 (Cost of Goods Sold)Credit $36,000 (Inventory)