FAD Company uses a periodic inventory system and its inventory records for the period contain the following information: 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 for $6,250.
B)Credit Cost of Goods Sold for $11,250.
C)Debit Purchases for $11,250.
D)Credit Inventory for $6,250.

Question

FAD Company uses a periodic inventory system and its inventory records for the period contain the following information:  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 for $6,250. 
B)Credit Cost of Goods Sold for $11,250. 
C)Debit Purchases for $11,250. 
D)Credit Inventory for $6,250.

Quizplus · Accepted Answer

The end-of-period adjustment to adjust cost of goods sold for the ending inventory on hand requires a debit to Inventory for the ending inventory amount and a credit to Cost of goods sold.

FAD Company Uses a Periodic Inventory System and Its Inventory