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

question 222

Multiple Choice

If the physical count of 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

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Definitions:

Range of Scores

The difference between the highest and lowest values in a set of numerical data, indicating the spread or dispersion of the scores.

Research Method

A systematic plan for conducting research, involving techniques and steps to collect and analyze information to increase our understanding of a topic or issue.

Experimenter Bias

A form of bias introduced by the experimenter whose expectations about the outcome of the experiment can be subtly communicated to the participants.

Confounds

Variables that the researcher failed to control, or eliminate, damaging the internal validity of an experiment.