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.

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Definitions:

Central Nervous System

The part of the nervous system consisting of the brain and spinal cord, responsible for processing information and controlling responses.

Nissl Bodies

Structures within the cytoplasm of neurons that are associated with ribonucleic acid (RNA) and protein synthesis.

Rough Endoplasmic Reticulum

A network of tubular membranes within the cytoplasm of the cell studded with ribosomes involved in the synthesis of proteins.

Enteric Nervous System

Known as the "second brain," this extensive mesh-like system of neurons controls the function of the gastrointestinal system.