The Inventory account balance is $50,000.An actual count of inventory reveals that actual inventory is $42,000.Which of the following would be included in the adjusting entry? (Assume a perpetual inventory system. )
A)a $8000 credit to Cost of sales
B)a $8000 credit to Inventory
C)a $42,000 credit to Inventory
D)a $50,000 debit to Cost of sales

Question

Quizplus · Accepted Answer

The adjusting entry would decrease the Inventory account by $8,000 (the difference between the actual inventory and the recorded balance) and increase the Cost of sales account by the same amount. Therefore, option B, a $8,000 credit to Inventory, is the correct choice.

The Inventory Account Balance Is $50,000