If the Physical Count of the Inventory Revealed $158,000 of Merchandise

question 98

Multiple Choice

If the physical count of the inventory revealed $158,000 of merchandise on hand and the inventory records reported $163,000, what would be the necessary adjusting entry to record inventory shortage?

• A) Merchandise inventory debit $158,000; Cost of Merchandise Sold credit $158,000.
• B) Merchandise inventory debit $5,000; Cost of Merchandise Sold credit $5,000.
• C) Cost of Merchandise Sold debit $163,000; Merchandise Inventory credit $158,000.
• D) Cost of Merchandise Sold debit $5,000; Merchandise Inventory credit $5,000.

---

Definitions:

Autonomous State

A concept where the state is seen as an independent entity, capable of making decisions and policies without external influences.

Public Interests

Concerns, values, or goals shared by the public or a community as a whole, often guiding policy or social action.

Autonomous State

A political entity that has a significant degree of self-governance, or independence, from higher authorities.

State Power

is the ability of a state to exercise control and governance over its territory and population, including the enforcement of laws and policies.