Question
The carter company uses the perpetual inventory system and the Fifo method, At the end of the fiscal year, Dec 31, 2015, the company conducted
The carter company uses the perpetual inventory system and the Fifo method, At the end of the fiscal year, Dec 31, 2015, the company conducted a physical count of the inventory on hand at all warehouses and stores. the fifo cost of the physical count is 1005400 according to the records, ending inventory using fifo is 1122000 which journal entry is required at dec 3,2015?
a) No journal entry is required
b) Debit loss on inventory shortage 116,600 and credit inventory 116,600
c) Debit inventory 116600 and credit allowance to reduce inventory 116600
d) debit COGS 116600 and credit allowance to reduce inventory 116600
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