Help needed - ETB

System
System Posts: 100,534 🤖 Admin 🤖
Hi there

Can anyone help me with this query please - I am doing an ETB for the Southtown Supplies exercise in the Osbourne workbook - the bit I am stuck on is:

"Stock was valued at £60,000; this figure excludes goods which were damaged by a burst water pipe and have been scrapped (no sale proceeds); Wyvern Insurance has agreed to cover the loss of £500 incurred in writing of the goods".

What entries do I make in the adjustments column? Is it:
Cr - Stock £500
Dr - Insurance Claims £500 - OR have I got this totally wrong?

Would be really grateful if someone could explain please?
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