8. Under a perpetual inventory system, the adjusting entry to account for inventory shrinkagewould includeO credit to miscellaneous expense.O credit to cost of goods sold.O credit to inventory.Odebit to miscellaneous expense.

Introduction: Journal: Recording of a business transactions in a chronological order. First step in…

Answered: 8. Under a perpetual inventory system,…

College Accounting, Chapters 1-27

23rd Edition

ISBN:9781337794756

Author:HEINTZ, James A.

Publisher:HEINTZ, James A.

Chapter14: Adjustments For A Merchandising Business

Section: Chapter Questions

Problem 2TF: Under the periodic inventory system, the ending inventory is entered by debiting Merchandise...

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Similar questions

Which of the following accounts are used when recording a purchase using a periodic inventory system? A. cash, purchases B. accounts payable, sales C. accounts payable, accounts receivable D. cash, merchandise inventory
What does an increase in inventory imply? How would this increase in inventory be reported under the indirect method?
Under the periodic inventory system, the ending inventory is entered by debiting Merchandise Inventory and crediting Income Summary.
Under the retail inventory method, freight-in would be included in the calculation of the goods available for sale for which of the following?
Under the perpetual inventory system, how does the seller record sales made on account?
Perpetual and Periodic Inventory Systems Below is a list of inventory systems options. a. Perpetual inventory system b. Periodic inventory system c. Both perpetual and periodic inventory systems Required: Match each option with one of the following: 1. Only revenue is recorded as sales are made during the period; the cost of goods sold is recorded at the end of the period. 2. Cost of goods sold is determined as each sale is made. 3. Inventory purchases are recorded in an inventory account. 4. Inventory purchases are recorded in a purchases account. 5. Cost of goods sold is determined only at the end of the period by subtracting the cost of ending inventory from the cost of goods available for sale. 6. Both revenue and cost of goods sold are recorded during the period as sales are made. 7. The inventory is verified by a physical count.
Using the perpetual inventory system, what account is debited when a business finds that its physical count of inventory is greater than the recorded amount?

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8. Under a perpetual inventory system, the adjusting entry to account for inventory shrinkage would include O credit to miscellaneous expense. credit to cost of goods sold. Ocredit to inventory. Odebit to miscellaneous expense.