A Firm Uses the Perpetual Inventory System

question 42

Multiple Choice

A firm uses the perpetual inventory system. The inventory account balance is $50 000. An actual count of inventory reveals that actual inventory is $43 000. Which of the following would be included in the required adjusting entry?

• A)A $7 000 credit to Cost of sales would be required.
• B)A $50 000 debit to Cost of sales would be required.
• C)A $43 000 credit to Inventory would be required.
• D)A $7 000 credit to Inventory would be required.

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