Use the information above to answer the following question.The journal entry necessary at the end of the period to adjust cost of goods sold for the ending inventory still on hand will include which of the following?
A)Debit Inventory,$6,250.
B)Credit Cost of goods sold,$11,250.
C)Credit Purchases,$10,200.
D)Credit Inventory,$5,000.

Question

Quizplus · Accepted Answer

To adjust cost of goods sold for the ending inventory still on hand, we need to credit inventory and debit cost of goods sold by the same amount. Since the ending inventory is valued at $6,250, we need to debit cost of goods sold for $6,250 and credit inventory for the same amount. Therefore, the journal entry should be:

Debit Cost of Goods Sold $6,250
Credit Inventory $6,250

Use the Information Above to Answer the Following Question