The trial balance of Marley Motorcycles shows Merchandise Inventory of $80,000.Based on a count taken on December 31,merchandise inventory at the end of the year actually totaled $92,000.The adjusting entry to place on the books,the new merchandise inventory balance would be:

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The adjusting entry to place on the books, the new merchandise inventory balance would be a debit to Merchandise Inventory of $92,000 and a credit to Income Summary for $92,000. This is because the ending inventory is higher than the beginning inventory, so the cost of goods sold will be lower and net income will be higher.

The Trial Balance of Marley Motorcycles Shows Merchandise Inventory of $80,000.Based