After Performing a Physical Count of Inventory at the End

question 131

Multiple Choice

After performing a physical count of inventory at the end of the accounting period,it was discovered that the amount of inventory on hand was less than the accounting records reported.The entry to record this inventory shrinkage includes:

• A)credit to Cost of Goods Sold.
• B)debit to Inventory.
• C)credit to Purchase Discounts.
• D)credit to Inventory.

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Definitions:

Hidden

generally refers to something that is concealed or not visible to the naked eye.

Quiet

Characterized by silence or low sound, free from disturbance or tumult.

Inactive

The state of not engaging in physical activity or not being currently in use or operation.

Scanty

Insufficient in amount or quantity; minimal or sparse.