If the Inventory Shows an Actual Count of $450 and the Perpetual

question 41

Multiple Choice

If the inventory shows an actual count of $450 and the perpetual inventory according to the records shows $410, the adjusting entry for the $40 would:

• A)debit Cost of Goods Sold; debit Purchase Returns and Allowances.
• B)debit Cost of Goods Sold; credit Inventory.
• C)debit Inventory; credit Cost of Goods Sold.
• D)debit Inventory; credit Purchase Returns and Allowances.

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Definitions:

Mental Flexibility

The ability to adapt one's thinking and behavior in response to changing circumstances or new information.

Creativity

The ability to produce original and valuable ideas or solutions by thinking outside the conventional boundaries.

Sigmund Freud

An Austrian neurologist and the founder of psychoanalysis, a clinical method for treating psychopathology through dialogue between a patient and a psychoanalyst.

Unconscious

A reservoir of feelings, thoughts, urges, and memories that are outside of our conscious awareness.