2 of 5 This Quiz: 5 pts possbie Suppose Dave\'s Discount\'s Merchandise Inventor

Question

2 of 5 This Quiz: 5 pts possbie Suppose Dave's Discount's Merchandise Inventory account showed a balance of $8,000 beloe the year-end adjustments The physcal court of gnods on had oae 7 400D a perpetual inveriory system. To adjust the accounes, which entry would tehe company make? DateAccounts and Explansation Debit Credit and Explanation OA Merchandise Inventory OB Accounts Payable O c. lMerchandise Inventory OD. ||Cost of Goods Sold Accounts Recevable Merchandise Invertory 600 Cost of Goods Sold 600 Merchandise Inventory Practee Gick to select your

Explanation / Answer

Answer D. Cost of Goods Sold                        Dr.            600    To Merchandise Inventory            600 Here, there is shortage of inventory $600 ($8,000 - $7,400) on physical verification. So, Merchandise Inventory will be reduced and the Cost of Goods Sold will be increased due to shortages.

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