The Merchandise Inventory account balance is $56,000.A physical count of inventory reveals that the actual inventory balance is $39,000.Which of the following would be included in the adjusting entry? (Assume a perpetual inventory system.)

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Quizplus · Accepted Answer

The adjusting entry to record the discrepancy between the book balance ($56,000) and the physical count ($39,000) would involve decreasing the Merchandise Inventory account by the difference of $17,000, which is done by crediting Merchandise Inventory.

The Merchandise Inventory Account Balance Is $56,000