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The Botanical Boutique uses the perpetual inventory system. At year end the general ledger indicated that the company had a balance of $27,000 in the
The Botanical Boutique uses the perpetual inventory system. At year end the general ledger indicated that the company had a balance of $27,000 in the Inventory account. Actual inventory on hand per a physical count was $23,000. What action does the company now need to take? O A. Debit Purchases and credit Cost of Goods Sold, $4,000 O B. Debit Inventory and credit Cost of Goods Sold, $4,000. C. No action is required because the amount is not material. D. Debit Cost of Goods Sold and credit Inventory, $4,000
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