The General Ledger Shows a Balance of $66,900 in the Merchandise

question 201

Multiple Choice

The general ledger shows a balance of $66,900 in the Merchandise Inventory account at the end of the period.The physical inventory count shows inventory of $63,600.The adjusting entry includes a ________.

• A)debit to Cost of Goods Sold and a credit to Merchandise Inventory for $3,300
• B)debit to Cost of Goods Sold and a credit to Cash for $3,300
• C)debit to Merchandise Inventory and a credit to Cost of Goods Sold for $3,300
• D)debit to Merchandise Inventory and a credit to Cash for $3,300

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Definitions:

Commitment

A pledge or a promise to engage in consistent actions or behavior, often in a personal or professional context.

Risk

The exposure to the chance of loss or damage, often quantified in terms of probability and impact.

Licensing

Granting of permission by the owner of a product, service, or intellectual property to another party to use it under defined conditions.

Direct Investment

A form of investment where individuals or companies purchase a direct interest in a foreign firm or undertake a new venture in another country.