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:

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Payments made by a corporation to its shareholder members, representing a portion of the corporation's earnings.

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Financial statements that present a concise overview of a company's financial position and performance, without detailed disclosures.

Financial Statements

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