The journal entry necessary at the end of the period to adjust cost of goods sold for the ending inventory still on hand will include which of the following?
A) Debit Inventory, $6,250.
B) Credit Cost of goods sold, $11,250.
C) Credit Purchases, $10,200
D) Credit Inventory, $5,000.

Question

Quizplus · Accepted Answer

The correct entry is to debit Inventory to increase it by the amount of ending inventory still on hand, which is $6,250.

The Journal Entry Necessary at the End of the Period