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

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