Gump Supplies has the following information: An inventory count taken at year end indicates that inventory with a cost of $56,000 is on hand as of December 31, 2010. Assume that inventory purchases and transportation-in are both reflected in the inventory account, which shows an ending balance of $59,000. Which of the following would be the best adjusting journal entry to make at the end of the period with respect to this information?

Question

Gump Supplies has the following information:  An inventory count taken at year end indicates that inventory with a cost of $56,000 is on hand as of December 31, 2010. Assume that inventory purchases and transportation-in are both reflected in the inventory account, which shows an ending balance of $59,000. Which of the following would be the best adjusting journal entry to make at the end of the period with respect to this information?

Quizplus · Accepted Answer

The Answer of Gump Supplies has the following information:  An inventory count taken at year end indicates that inventory with a cost of $56,000 is on hand as of December 31, 2010. Assume that inventory purchases and transportation-in are both reflected in the inventory account, which shows an ending balance of $59,000. Which of the following would be the best adjusting journal entry to make at the end of the period with respect to this information?

Gump Supplies Has the Following Information: an Inventory Count