30. Target uses the perpetual inventory system. Assume that at year end Targets accounting records showed an inventory balance of $1000. Also assume that Target counted the inventory in its store and determined the actual inventory on hand to be $925. Given the difference between the inventory record and the physical count of inventory, that would be the appropriate adjusting journal entry at year end?

a. debit inventory $75, credit cost of goods sold $75

b. debit inventory $925, debit cost of goods sold $75, credit inventory $1000

c. debit cost of goods sold $75, credit inventory $75

d. debit inventory $1000. Credit cost of goods sold $75, credit inventory $925

e. none of the above

31. When the perpetual inventory system is used, which of the following accounts are closed by debiting income summary:

a. Purchases, Freight-In

b. Cost of goods sold, Delivery expense

c. purchase discounts, delivery expense

d. purchase returns & allowances

e. none of the above

Roberts Company reports the following data regarding inventory purchases and sales

Date	Event	Amount
March 1	Beginning inventory	200 units at $4 each
March 10	Purchase of inventory	500 units at $5 each
March 15	Sale	550 units at $8 each
March 20	Purchase of inventory	450 units at $6 each
March 25	Sale	400 units at $9 each

4. Given the above facts, what is the cost of inventory available for sale?

a. $2000 b. $4000 C. $6000 D. $8000 e. none of the above

5. If Roberts uses a perpetual inventory system and LIFO valuation, then cost of goods sold is:

a. $800 b. $900 c. $5100 D. $5200 E. None of the above

7. If Roberts uses a periodic inventory system and LIFO valuation, then cost of goods sold is:

a. $800 b. $900 c. $5100 D. $5200 E. None of the above