When the Physical Count of RNA Company Inventory Had a Cost

question 4

Multiple Choice

When the physical count of RNA Company inventory had a cost of $3,400 at year end and the unadjusted balance in Merchandise Inventory was $3,500, RNA will have to make the following entry:

• A) \(\begin{array} { l }\text {Cost of Goods Sold. }&100 \\
• \text {Merchandise Inventory }&&100 \\\end{array}\)
• B)\(\begin{array} { l } \text { Merchandise Inventory.}&100 \\
• \text { Cost of Goods Sold}&&100 \\\end{array}\)
• C) \(\begin{array} { l }\text { Income Summary. }&100 \\
• \text { Merchandise Inventory}&&100 \\\end{array}\)
• D) \(\begin{array} { l }\text { Cost of Goods Sold}&3,500 \\
• \text {Merchandise Inventory }&&3,500 \\
• \end{array}\)

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Definitions:

Mainframes

Powerful computers used primarily by large organizations for critical applications, bulk data processing such as census, industry and consumer statistics, enterprise resource planning, and financial transaction processing.

Large Enterprises

Corporations or business entities that operate on a large scale, typically characterized by a significant number of employees or large revenue.

Extensive Computing Applications

Software applications characterized by their comprehensive scope, significant processing power, or capability to handle large amounts of data.

Communication Technologies

Tools and platforms that enable the electronic exchange of information (text, audio, video, etc.) across distances, such as email, social networks, and video conferencing.