If the physical count of inventory is more than the amount on the accounting records, what account is debited?
A)Merchandise Inventory
B)Cost of Goods Sold
C)Sales
D)Misc.Expense

Question

Quizplus · Accepted Answer

When the physical count of inventory is more than the amount on the accounting records, it means that there is more inventory available than was accounted for. Therefore, the Merchandise Inventory account should be debited to reflect the additional inventory on hand.

If the Physical Count of Inventory Is More Than the Amount