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At the end of its accounting year, Guild Corp.'s physical inventory count indicated that 540,000 units of inventory, costing $1.50 each, were on hand. The
At the end of its accounting year, Guild Corp.'s physical inventory count indicated that 540,000 units of inventory, costing $1.50 each, were on hand. The company's perpetual inventory system reported a balance of $817,200. The year end adjusting entry is
a) debit Inventory and credit Loss on Inventory Due to Count, $7,200.
b) debit Loss on Inventory Due to Count and credit Inventory, $7,200.
c) debit Inventory and credit Loss on Inventory Due to Count, $277,200.
d) debit Loss on Inventory Due to Count and credit Inventory, $277,200.
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