If the Physical Count of the Inventory Revealed $158,000 of Merchandise

question 158

Multiple Choice

If the physical count of the inventory revealed $158,000 of merchandise on hand and the inventory records reported $163,000,what would be the necessary adjusting entry to record inventory shrinkage?

• A)debit Merchandise Inventory,$158,000; credit Cost of Merchandise Sold,$158,000
• B)debit Merchandise Inventory,$5,000; credit Cost of Merchandise Sold,$5,000
• C)debit Cost of Merchandise Sold,$163,000; credit Merchandise Inventory,$158,000
• D)debit Cost of Merchandise Sold,$5,000; credit Merchandise Inventory,$5,000

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Definitions:

Security

Measures or mechanisms employed to guard against theft, attack, or other threats, ensuring the safety of individuals or assets.

National Security Exchange

A regulated marketplace for the trading of securities, such as stocks and bonds, that must adhere to specific government standards for the protection of investors.

Securities Act Of 1933

A U.S. law enacted to ensure transparency and fairness in the securities market, requiring issuers of securities to disclose significant information to investors.

Definition Of Security

A financial instrument that represents an ownership position in a publicly-traded corporation (stock), a creditor relationship with a governmental body or a corporation (bond), or rights to ownership as represented by an option.