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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Definitions:

Prohibiting Criticism

A policy or practice that restricts or discourages negative feedback or constructive dissent within an organization or group.

Free Flowing

Describes a process or system that operates efficiently and smoothly without any obstructions or restrictions.

Enthusiasm

A feeling of energetic interest in a particular subject or activity and an eagerness to be involved in it.

Disconfirming Data

Information or evidence that challenges or contradicts established beliefs or theories.