The Merchandise Inventory account balance is $52,000.A physical count of inventory reveals that the actual inventory balance is $41,000.Which of the following would be included in the adjusting entry? (Assume a perpetual inventory system. )
A)a $41,000 credit to Merchandise Inventory
B)a $52,000 debit to Cost of Goods Sold
C)a $11,000 credit to Cost of Goods Sold
D)a $11,000 credit to Merchandise Inventory

Question

Quizplus · Accepted Answer

The adjusting entry to record the discrepancy between the Merchandise Inventory account balance and the physical inventory count involves crediting Merchandise Inventory for the difference ($11,000) to decrease the account balance to match the actual inventory value.

The Merchandise Inventory Account Balance Is $52,000