Jayson Products Uses a Perpetual Inventory System

question 58

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 control account and inventory subsidiary ledger by $7,000.
• D)Reduce the balance in the Inventory control account and record a current liability,both in the amount of $7,000.

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Definitions:

Culture Existence

The fact that various cultures exist, each with their own norms, values, beliefs, and practices that differentiate them from others.

Shared

Owned, used, or experienced collectively by a group of people, suggesting collaboration or joint ownership.

Behaviors

The observable actions or responses of individuals, influenced by their environment, culture, and psychological aspects.

Empathizing Skill

The capacity to understand and share the feelings or thoughts of another person, promoting better interpersonal relations.