A company uses the perpetual inventory system.At year end the general ledger indicated that this company had a balance of $50,000 in the Inventory account.Actual inventory on hand per a physical count was $51,500.What action does the company now need to take?
A) No action is needed;the difference between the ledger and actual is less than 5%.
B) The company needs to debit Cost of Goods Sold and credit Inventory,$1,500.
C) The company needs to debit Inventory and credit Cost of Goods Sold for $1,500.
D) The company should debit the Purchases account and credit Cost of Goods Sold.
Correct Answer:
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