The Merchandise Inventory account balance is $50,000.An physical count of inventory reveals that actual inventory balance is $47,000.Which of the following would be included in the adjusting entry? (Assume a perpetual inventory system. )

Question

Quizplus · Accepted Answer

The adjusting entry would include a credit to Merchandise Inventory for the difference between the actual inventory balance and the recorded balance. In this case, the difference is $3,000, so the entry would be a $3,000 credit to Merchandise Inventory. None of the other options reflect the correct adjustment needed for the discrepancy in inventory balances.

The Merchandise Inventory Account Balance Is $50,000