If the Actual Inventory Count Determines an Inventory Value of $350

question 55

Short Answer

If the actual inventory count determines an inventory value of $350 while the perpetual inventory records
show a value of $339, what is the adjusting entry for the $11?

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Definitions:

Good Faith

The sincere aim to behave without exploiting another party unfairly in a deal.

Commercial Standards

Commercial Standards are established norms or criteria within a business sector that guide the quality, performance, and conduct of activities in that field.

Treated

Subjected to a specific process or course of action, typically to achieve a certain effect or outcome.

Owns

To own means to have legal right or title to an object, property, or asset, granting the holder exclusive rights to the use, enjoyment, and disposition of that asset.