A Company Uses the Perpetual Inventory System

question 20

Multiple Choice

A company uses the perpetual inventory system.The inventory account balance is $50,000.An actual count of inventory reveals that actual inventory is $43,000.Which of the following would be included in the required adjusting entry?

• A) A $43,000 credit to Inventory would be required.
• B) A $50,000 debit to Cost of goods sold would be required.
• C) A $7,000 credit to Cost of goods sold would be required.
• D) A $7,000 credit to Inventory would be required.

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Definitions:

Preoperative Medication

Medicines given to patients before surgical procedures to minimize pain, reduce the risk of infection, or ease anxiety.

Restroom

A facility equipped with toilets and sinks for public or private use.

Bladder Distention

The swelling or enlargement of the bladder, often due to the accumulation of urine.

Catheterization

Introduction of a catheter into a body cavity or organ to inject or remove fluid.