Mary Monitor,CPA,noted That ABC Co

question 97

Multiple Choice

Mary Monitor,CPA,noted that ABC Co.received goods prior to year-end that were included in physical inventory but had not been recorded.In this case,which of the following adjustments should be made?

• A)Debit Purchases/credit Cost of Goods Sold.
• B)None.
• C)Debit Inventory/credit Accounts Payable.
• D)Debit Cost of Goods Sold/credit Accounts Payable.

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Definitions:

Posting

The process of transferring information from the journal to individual accounts in the ledger, which helps in preparing financial statements.

Journal

A book or digital record where all financial transactions of a business are initially recorded before being transferred to specific accounts in the ledger.

Ledger Accounts

Reflects a record of all the financial transactions made by a company, summarized into different categories for reporting purposes.

Accounts Receivable

Amounts owed by customers to an enterprise for goods or services that have been dispatched but not yet reimbursed.