Bronx Company's Ending Inventory (At Cost) Was Less Than the Market

question 49

Multiple Choice

Bronx Company's ending inventory (at cost) was less than the market value of the ending inventory. What adjusting entry is required to account for this difference?

• A) Debit Cost of Goods Sold and credit Sales
• B) Debit Inventory and credit Cost of Goods Sold
• C) Debit Cost of Goods Sold and credit Inventory
• D) No journal entry is needed.

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