When a bakery transfers goods from the Decorating Department to the retail shelf, the accounting entry is

Question

Quizplus · Accepted Answer

The given accounting entry format is not recognized, but transferring goods from the Decorating Department to retail shelf means there is an increase in inventory in the retail store. Therefore, the correct accounting entry would be a debit to the inventory account on the retail shelf and a credit to the inventory account of the Decorating Department. Option B has the correct numbers in the unknown format for a debit and a credit, respectively.

When a Bakery Transfers Goods from the Decorating Department to the Retail