The Merchandise Inventory Account of a Company Shows a Balance

question 85

Multiple Choice

The Merchandise Inventory account of a company shows a balance of $50,000 but a physical count of inventory shows $48,000. Which of the following entries is required to record the shrinkage? (Assume a perpetual inventory system)

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Definitions:

Sustainable Competitive Advantage

Sustainable competitive advantage exists through realising cost and quality, knowledge and speed, creating a market stronghold and protecting financial resources.

Strategic Management

involves the formulation and implementation of the major goals and initiatives taken by a company's top management on behalf of owners, based on consideration of resources and an assessment of the internal and external environments in which the organization competes.

Social Responsibility Objectives

Goals that aim to improve community well-being and protect the environment as part of an organization's operations.

Competitive Advantage

is the attribute that allows an organization to outperform its competitors, resulting from unique resources, capabilities, or strategies.