The Merchandise Inventory Account of a Company Shows a Balance

question 153

Multiple Choice

The Merchandise Inventory account of a company shows a balance of $50,000 but a physical count of inventory shows $43,000 Which of the following entries is required to record the shrinkage? (Assume a perpetual inventory system. )

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Definitions:

TPS

Stands for Transaction Processing System, a type of information system that collects, stores, modifies, and retrieves the transactions of an organization.

JIT Partnerships

Refers to Just-In-Time partnerships, a collaboration between suppliers and manufacturers to ensure materials are delivered just in time for production, reducing inventory costs and enhancing efficiency.

Variability

Variability refers to the extent to which data points in a set differ from the average value.

JIT

Just-In-Time is a management strategy that aligns raw-material orders from suppliers directly with production schedules, aiming to minimize inventory costs and increase efficiency.