Only the debit adjustment amount in the merchandise inventory account is extended to the Adjusted Trial Balance columns of the work sheet.

Question

Quizplus · Accepted Answer

This is true. Only the debit adjustment amount in the merchandise inventory account (if there is one) is extended to the Adjusted Trial Balance columns of the work sheet. The credit adjustment amount for merchandise inventory would be reflected in the Cost of Goods Sold account.

Only the Debit Adjustment Amount in the Merchandise Inventory Account