Question
The ending inventory of a company was $45,000 as per the perpetual inventory records. The current replacement cost for the ending inventory is $43,000. The
The ending inventory of a company was
$45,000
as per the perpetual inventory records. The current replacement cost for the ending inventory is
$43,000.
The journal entry to adjust inventory is:
A.
Merchandise Inventory | 2,000 | |
Cost of Goods Sold | 2,000 |
B.
Cost of Goods Sold | 43,000 | |
Merchandise Inventory | 43,000 |
C.
Merchandise Inventory | 43,000 | |
Cost of Goods Sold | 43,000 |
D.
Cost of Goods Sold | 2,000 | |
Merchandise Inventory | 2,000 |
The ending inventory of a company was $158,000 as per the perpetual inventory records. The current replacement cost for the ending inventory is $148,000. The journal entry to adjust inventory is:
A.
Merchandise Inventory | 10,000 | |
Cost of Goods Sold | 10,000 |
B.
Cost of Goods Sold | 10,000 | |
Merchandise Inventory | 10,000 |
C.
Cost of Goods Sold | 148,000 | |
Merchandise Inventory | 148,000 |
D.
No journal entry is needed.
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