The General Ledger Shows a Balance of $23 678 in the Inventory

question 98

Multiple Choice

The general ledger shows a balance of $23 678 in the Inventory account at the end of the period. A physical inventory shows a count of $22 078. The adjusting entry would be a:

• A)debit to Cost of sales and a credit to Cash.
• B)debit to Cost of sales and a credit to Inventory.
• C)debit to Inventory and a credit to Cost of sales.
• D)debit to Inventory and a credit to Cash.

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Definitions:

Lawsuit

A legal case brought to a court of law in which one party sues another for a wrongdoing or dispute resolution.

Statute

A written law passed by a legislative body at the national or local level.

Common Law

A body of unwritten laws based on legal precedents established by the courts.

Early English Kings

Monarchs who ruled over England during the early historical periods, often considered up to the Norman Conquest of 1066.