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Assuming the company uses the earnings approach for revenue recognition, in a perpetual system, if the accounting records show an ending inventory balance of $21900
Assuming the company uses the earnings approach for revenue recognition, in a perpetual system, if the accounting records show an ending inventory balance of $21900 and a physical count shows a balance of $20500, it is necessary to O debit Sales Returns and Allowances and credit Merchandise Inventory for $1400. O debit Merchandiselitventory and credit Cost of Goods Sold for $1400. O debit Cost of Goods Sold and credit Sales Returns and Allowances for $1400. O debit Cost of Goods Sold and credit Merchandise Inventory for $1400
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