At the End of Its Accounting Year, Guild Corp

question 63

Multiple Choice

At the end of its accounting year, Guild Corp.'s physical inventory count indicated that 540,000 units of inventory, costing $1.50 each, were on hand.The company's perpetual inventory system reported a balance of $817,200.The year-end adjusting entry is

• A)debit Inventory and credit Loss on Inventory Due to Count, $7,200.
• B)debit Loss on Inventory Due to Count and credit Inventory, $7,200.
• C)debit Inventory and credit Loss on Inventory Due to Count, $277,200.
• D)debit Loss on Inventory Due to Count and credit Inventory, $277,200.

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Definitions:

Savings

Money set aside for future use that is not currently spent on consumption or expenses.

Correlation Coefficient

A metric that determines the intensity and orientation of a linear connection between two variables.

T Test

A statistical test used to determine if there is a significant difference between the means of two groups which may be related in certain features.