The General Ledger Shows a Balance of $67,900 in the Merchandise

question 116

Multiple Choice

The general ledger shows a balance of $67,900 in the Merchandise Inventory account at the end of the period. The physical inventory count shows inventory of $65,300. The adjusting entry includes a:

• A)debit to Cost of Goods Sold and a credit to Merchandise Inventory for $2,600.
• B)debit to Cost of Goods Sold and a credit to Cash for $2,600.
• C)debit to Merchandise Inventory and a credit to Cost of Goods Sold for $2,600.
• D)debit to Merchandise Inventory and a credit to Cash for $2,600.

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Definitions:

Effective Buffer

A strategy or statement designed to soften the impact of bad news or negative information, making it easier for the receiver to accept.

Neutral

Being unbiased, impartial, or not siding with any particular view or party.

Noncontroversial

Descriptive of topics or issues that do not provoke public disagreement or dispute.

Repeat Business

The continuous engagement of customers with a business, resulting in them purchasing products or services more than once.