The General Ledger Shows a Balance of $67,000 in the Merchandise

question 70

Multiple Choice

The general ledger shows a balance of $67,000 in the Merchandise Inventory account at the end of the period.The physical inventory count shows inventory of $64,400.(Assume a perpetual inventory system.) The adjusting entry includes a ________.

• A) debit to Cost of Goods Sold and a credit to Merchandise Inventory for $2,600
• B) debit to Cost of Goods Sold and a credit to Cash for $2,600
• C) debit to Merchandise Inventory and a credit to Cost of Goods Sold for $2,600
• D) debit to Merchandise Inventory and a credit to Cash for $2,600

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Definitions:

Rewarding

Pertains to providing positive reinforcement or advantages as a result of someone's actions or behavior, enhancing motivation.

Challenging

Presenting difficulty or testing someone's abilities or determination in a way that is stimulating and engaging.

Creative Atmosphere

An environment or culture that nurtures innovation, open-mindedness, and the free flow of ideas, supporting creativity.

Business Factors

include the various elements that influence the operation and success of a company, such as market trends, competition, and internal capabilities.