The Merchandise Inventory Account of a Company Shows a Balance $$\begin{array} { | c | r | r | } \hline \text { Cost of Goods Sold } & 9,000 & \\\hline \text { Shrinkage Expense } & & 9,000 \\\hline\end{array}$$

question 45

Multiple Choice

The Merchandise Inventory account of a company shows a balance of $50,000 but a physical count of inventory shows $41,000 Which of the following entries is required to record the shrinkage? (Assume a perpetual inventory system.)

• A) \[\begin{array} { | c | r | r | }
• \hline \text { Cost of Goods Sold } & 9,000 & \\
• \hline \text { Shrinkage Expense } & & 9,000 \\
• \hline
• \end{array}\]
• B) \[\begin{array} { | c | r | r | }
• \hline \text { Merchandise Inventory } & 9,000 & \\
• \hline \text { Cost of Goods Sold } & & 9,000 \\
• \hline
• \end{array}\]
• C) \[\begin{array} { | l | r | r | }
• \hline \text { Cost of Goods Sold } & 9,000 & \\
• \hline \text { Merchandise Inventory } & & 9,000 \\
• \hline
• \end{array}\]
• D) \[\begin{array} { | l | r | r | }
• \hline \text { Cash } & 9,000 & \\
• \hline \text { Merchandise Inventory } & & 9,000 \\
• \hline
• \end{array}\]

Identify factors that contribute to variations in cognitive processes among individuals.

Understand the distinctions between art products and craft products, including their functional value.

Recognize the influence of media and cultural formulas on perception and society.

Be able to discuss the components of a culture production system.

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