If the Physical Count of the Inventory Revealed $158,000 of Merchandise

question 158

Multiple Choice

If the physical count of the inventory revealed $158,000 of merchandise on hand and the inventory records reported $163,000,what would be the necessary adjusting entry to record inventory shrinkage?

• A)debit Merchandise Inventory,$158,000; credit Cost of Merchandise Sold,$158,000
• B)debit Merchandise Inventory,$5,000; credit Cost of Merchandise Sold,$5,000
• C)debit Cost of Merchandise Sold,$163,000; credit Merchandise Inventory,$158,000
• D)debit Cost of Merchandise Sold,$5,000; credit Merchandise Inventory,$5,000

---

Definitions:

Copyright Registration

The process of recording a copyright with the copyright office of a country, which provides legal benefits such as public record and legal evidence of copyright ownership.

Copyright

The exclusive right of authors to publish, print, or sell an intellectual production for a statutory period of time. A copyright has the same monopolistic nature as a patent or trademark, but it differs in that it applies exclusively to works of art, literature, and other works of authorship, including computer programs.

Business Processes

The series of activities or tasks that companies perform to create value, deliver products, or provide services.

Copyrightable

Qualifying for copyright protection; used to describe original works of authorship that are fixed in a tangible medium of expression.