A Company's Ledger Shows an Inventory Balance of $20,000 and a Physical

question 13

Multiple Choice

A company's ledger shows an Inventory balance of $20,000 and a physical count of the inventory shows $19,000.Which of the following entries is needed to record the shrinkage?

• A) \[\begin{array} { | l | r | r | }
• \hline \text { Cost of goods sold } & 1,000 & \\
• \hline \text { Shrinkage expense } & & 1,000 \\
• \hline
• \end{array}\]
• B) \[\begin{array} { | l | r | r | }
• \hline \text { Inventory } & 1,000 & \\
• \hline \text { Cost of goods sold } & & 1,000 \\
• \hline
• \end{array}\]
• C) \[\begin{array} { | l | r | r | }
• \hline \text { Cost of goods sold } & 1,000 & \\
• \hline \text { Inventory } & & 1,000 \\
• \hline
• \end{array}\]
• D) \[\begin{array} { | l | r | r | }
• \hline \text { Cash } & 1,000 & \\
• \hline \text { Inventory } & & 1,000 \\
• \hline
• \end{array}\]

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Definitions:

Forebrain

The anterior part of the brain, including the cerebral hemispheres, the thalamus, and the hypothalamus, responsible for complex behaviors, thought, and emotion.

Action Potential

A temporary reversal of the electrical polarization of the membrane of a nerve cell or muscle cell, allowing for the transmission of signals.

Axon

A long, slender projection of a nerve cell, or neuron, that conducts electrical impulses away from the neuron's cell body.

Central Nervous System

The major part of the nervous system consisting of the brain and spinal cord, which integrates and processes nervous information.