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The Merchandise Inventory account of a company shows a balance of $70,000 but a physical count of inventory shows $69,000. Which of the following entries is required to record the shrinkage? (Assume a perpetual inventory system.) OA. Merchandise Inventory Cost of Goods Sold OB. Cost of Goods Sold Shrinkage Expense OC. Cash Merchandise Inventory OD. Cost of Goods Sold Merchandise Inventory 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000

The Merchandise Inventory account of a company shows a balance of $70,000 but a physical count of inventory shows $69,000. Which of the following entries is required to record the shrinkage? (Assume a perpetual inventory system.) OA. Merchandise Inventory Cost of Goods Sold OB. Cost of Goods Sold Shrinkage Expense OC. Cash Merchandise Inventory OD. Cost of Goods Sold Merchandise Inventory 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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The Merchandise Inventory account of a company shows a balance of $70,000 but a physical count of inventory shows $69,000. Which of the following entries is required to record the shrinkage? (Assume a perpetual inventory system.) ***** OA. Merchandise Inventory Cost of Goods Sold OB. Cost of Goods Sold Shrinkage Expense OC. Cash Merchandise Inventory OD. Cost of Goods Sold Merchandise Inventory 1,000 1,000 1,000 1,000 E 1,000 1,000 1,000 1,000 Activate Windows
Transcribed Image Text:The Merchandise Inventory account of a company shows a balance of $70,000 but a physical count of inventory shows $69,000. Which of the following entries is required to record the shrinkage? (Assume a perpetual inventory system.) ***** OA. Merchandise Inventory Cost of Goods Sold OB. Cost of Goods Sold Shrinkage Expense OC. Cash Merchandise Inventory OD. Cost of Goods Sold Merchandise Inventory 1,000 1,000 1,000 1,000 E 1,000 1,000 1,000 1,000 Activate Windows
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