Under a perpetual inventory system, the adjusting entry to account for inventory shrinkage would include a:
A)credit to Miscellaneous Expense.
B)credit to Cost of Goods Sold.
C)credit to Inventory.
D)debit to Miscellaneous Expense.

Question

Quizplus · Accepted Answer

Inventory shrinkage is accounted for by reducing the inventory balance, which involves crediting the Inventory account.

Under a Perpetual Inventory System, the Adjusting Entry to Account