A Company Used a Perpetual Inventory System

question 58

Multiple Choice

A company used a perpetual inventory system. By physical count, ending Merchandise Inventory is $90,200. The balance in the Merchandise Inventory account is $93,700. The adjusting entry is

• A)debit to Income Summary, $3,500; credit Merchandise Inventory, $3,500.
• B)debit to Merchandise Inventory, $3,500; credit Income Summary, $3,500.
• C)debit to Cost of Goods Sold, $3,500; credit Merchandise Inventory, $3,500.
• D)debit to Income Summary, $3,500; credit Cost of Goods Sold, $3,500.
• E)debit to Merchandise Inventory, $3,500; credit Cost of Goods Sold, $3,500.

Understand licensing agreements and their importance in international business.

Identify different multinational strategies, including customization and standardization, and their applications in global markets.

Recognize the different forms of foreign direct investment and their significance.

Understand the adjustments companies make in their strategies to cater to different international markets.

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