A Merchandising Company Using a Perpetual System May Record an Adjusting

question 80

Multiple Choice

A merchandising company using a perpetual system may record an adjusting entry due to an inventory count by

• A) debiting Income Summary.
• B) crediting Income Summary.
• C) debiting Cost of Goods Sold.
• D) debiting Sales Revenue.

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Definitions:

Tax

Mandatory financial charge imposed by a government on individuals, corporations, or transactions to fund public expenditures.

Demand Curve

A visual depiction showing how the demand for a product varies with its price, usually illustrated with a line that slopes downwards towards the right.

Buyers

Persons or organizations that acquire products or services in the marketplace.

Taxes

Financial charges imposed by governments on individuals, businesses, or other entities, primarily to fund public expenditures.