Question
The trial balance of Premier Lighting Co. shows Merchandise Inventory of $35,000. Based on a count taken on December 31, merchandise inventory at the end
The trial balance of Premier Lighting Co. shows Merchandise Inventory of $35,000. Based on a count taken on December 31, merchandise inventory at the end of the year actually totaled $28,000. The adjusting entry to remove the old merchandise inventory balance would be:
A)a debit to Income Summary of $28,000 and a credit to Merchandise Inventory for $28,000.
B)a debit to Merchandise Inventory of $28,000 and a credit to Income Summary for $28,000.
C)a debit to Purchases of $35,000 and a credit to Merchandise Inventory for $35,000.
D)a debit to Income Summary of $35,000 and a credit to Merchandise Inventory for $35,000
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