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When calculating ending inventory under a periodic inventory, you are provided this information: Purchases $88,000; Beginning Inventory $4,000; Sales Revenue $125,000; physical count of Ending
When calculating ending inventory under a periodic inventory, you are provided this information: Purchases $88,000; Beginning Inventory $4,000; Sales Revenue $125,000; physical count of Ending Inventory $7,500. Which of the following is true?
Question 23 options:
| The journal entry to record the ending inventory is Debit Inventory $3,500, Credit Cost of Goods Sold $3,500 |
| Debit Cost of Goods Sold $92,000, Credit Inventory $4,000 and Credit Purchases $88,000 |
| Both a. and b. |
| Neither a. nor b. |
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