If there is a difference between the physical count and the perpetual record, the account in which the difference is recorded is:

Question

Quizplus · Accepted Answer

The difference between the physical count and perpetual record represents an inventory adjustment, which affects the Cost of Goods Sold account. This is because the cost of the missing or excess inventory needs to be accounted for in determining the total cost of goods sold for the period. Therefore, the account in which the difference is recorded is the Cost of Goods Sold account.

If There Is a Difference Between the Physical Count and the Perpetual