Chapter 13, Problem 2.4SRE

A reversing entry is made for an end-of-period adjustment that recorded:

1.     a.          estimated bad debts for the period.
2.    b.          an accrued expense that involves future cash payments.
3.     c.          a transfer of an amount from a prepaid expense account to an expense account.
4.    d.          the change in merchandise inventory.