Q-8-3b. Adjust Perpetual Inventory Records

Craigs Design and Landscaping Services accountant needs to record an inventory adjustment for the purpose of adjusting the inventory quantity of an item to a physical count at year-end. The physical count for the item was less than the quantity on hand in QBO. Open the Inventory Quantity Adjustment window and answer the following question. Which account is the default account used to record the effects of the inventory quantity adjustment?

Please add checkmark next to the correct answer(s).

1 Cost of Goods Sold

2 Inventory

3 Inventory Shrinkage

4 Miscellaneous Expense