Jayson Products Uses a Perpetual Inventory System

question 27

Multiple Choice

Jayson Products uses a perpetual inventory system. At year-end, the Inventory account had a balance of $280,000, but a complete year-end physical inventory indicated goods on hand costing only $273,000. Jayson should:

• A) Reduce its cost of goods sold by $7,000.
• B) Record a $7,000 current liability.
• C) Reduce the balance in its Inventory controlling account and inventory subsidiary ledger by $7,000.
• D) Reduce the balance in the Inventory controlling account and record a current liability, both in the amount of $7,000.

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Definitions:

Direct Marketing

Advertising that communicates directly with consumers and organizations in an effort to provoke a response.

Consistent Message

A communication strategy that ensures all messages shared across various channels are uniform in content and tone, enhancing brand recognition and trust.

Direct Marketing

A type of advertising strategy that delivers promotional messages directly to potential customers on an individual basis, often through mail, email, or phone.

Coupons

Documents that entitle the customers who carry them to a discount on a product.