At the End of Its Accounting Year, Colin Corp

question 140

Multiple Choice

At the end of its accounting year, Colin Corp.'s physical inventory count indicated that 180,000 units of inventory, costing $1.75 each, were on hand. The company's perpetual inventory system reported a balance of $357,600. The year-end adjusting entry is

• A) debit Inventory and credit Loss on Inventory Due to Count, $42,600.
• B) debit Loss on Inventory Due to Count and credit Inventory, $42,600.
• C) debit Inventory and credit Loss on Inventory Due to Count, $92,400.
• D) debit Loss on Inventory Due to Count and credit Inventory, $92,400.

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