If the Inventory Shows an Actual Count of $405 and the Perpetual

question 154

Multiple Choice

If the inventory shows an actual count of $405 and the perpetual inventory according to the records shows $420, the adjusting entry for the $15 would:

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

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