The Merchandise Inventory Account Balance Is $50,000

question 95

Multiple Choice

The Merchandise Inventory account balance is $50,000.An physical count of inventory reveals that actual inventory balance is $42,000.Which of the following would be included in the adjusting entry? (Assume a perpetual inventory system. )

• A)a $42,000 credit to Merchandise Inventory
• B)a $50,000 debit to Cost of Goods Sold
• C)a $8,000 credit to Cost of Goods Sold
• D)a $8,000 credit to Merchandise Inventory

---

Definitions:

Sales Journal

A specialized accounting journal used to record all sales transactions of a company, usually on credit.

Cash Payments Journal

A financial journal used in accounting that records all cash outflows or payments made by a business, including expenses and debts.

Other Accounts Column

A section in accounting journals or ledgers for recording entries that do not fit into the standard categories of the accounting system.

General Ledger

A complete record of all financial transactions over the life of a company, serving as the primary source of data for all financial reports.