The General Ledger Shows a Balance of $23,678 in the Inventory

question 51

Multiple Choice

The general ledger shows a balance of $23,678 in the Inventory account at the end of the period.A physical inventory shows a count of $22,078.The adjusting entry would be a:

• A) debit to Cost of goods sold and a credit to Cash.
• B) debit to Inventory and a credit to Cash.
• C) debit to Cost of goods sold and a credit to Inventory.
• D) debit to Inventory and a credit to Cost of goods sold.

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Definitions:

Faulty Part

A defective or malfunctioning component in a machine or system.

Seal

A device or stamp used to imprint a design on a document as a form of authentication or to signify a formal agreement.

Multinational

A corporation or enterprise that operates and has facilities or other assets in at least one country other than its home country.

Free Enterprise

An economic system where private business operates in competition and largely free of state control.