A. The ending balance in the Merchandise Inventory account is $250,000, but a physical count
shows that only $240,000 of goods are on hand.
	DATE	ACCOUNTS & DESCRIPTIONS				POST REF	dr	cr
	Dec. 31					xxx
						xxx
		To adjust the ending balance of Merchandise Inventory to the count.
B. The ending balance in the Merchandise Inventory account is $250,000, but a physical count
shows that $265,000 of goods are on hand.
	DATE	ACCOUNTS & DESCRIPTIONS				POST REF	dr	cr
	Dec. 31					xxx
						xxx
		To adjust the ending balance of Merchandise Inventory to the count.