The Betta Corp's inventory account balance was $1,450 at the end of the year. A physical inventory count revealed that inventory on hand was $1,150. What amount should Betta report on the balance sheet for inventory?

Question

Quizplus · Accepted Answer

The amount Betta should report on the balance sheet for inventory is the actual amount of inventory on hand, which is $1,150. The inventory account balance of $1,450 includes items that have not been sold or used up yet, but the physical inventory count reveals the actual amount of inventory on hand. Therefore, the correct amount to report on the balance sheet is $1,150. The other answer choices are either too high or do not reflect the actual inventory on hand.

The Betta Corp's Inventory Account Balance Was $1,450 at the End