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)

Recognize the benefits of specialization and trade based on comparative advantage.

Analyze trade benefits between countries using comparative advantage.

Understand the role of exports in a country's GDP.

Identify the short-term benefits of protectionism for domestic producers.

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Definitions:

Island Arc

A curved chain of volcanic islands located along a subduction zone, formed by the rising magma from the descending tectonic plate.

Terranes

Distinct pieces of the crust that have been attached to a continent but originated elsewhere.

Sedimentary Unit

A sedimentary unit is a distinct layer of sedimentary rock with identifiable characteristics and depositional history, making it recognizable and distinguishable from other layers.

Intrusion

The forced entry of molten rock into or between other rock formations underground.