Question

The general ledger shows a balance of $ 66 comma 200 in the Merchandise Inventory account at the end of the period. The physical inventory count shows inventory of $ 63 comma 000. ​(Assume a perpetual inventory​ system.) The adjusting entry includes a​ ________.

Answer 1

The adjusting entry includes a debit to Cost of Goods Sold and a credit to Merchandise Inventory for $3,200

Explanation:

Perpetual inventory is a method of accounting for inventory that records the sale or purchase of inventory immediately

The adjusting entry is calculated by subtracting the physical inventory account from the merchandise inventory account

Given

Physical Inventory Account= $63,000

Merchandise Inventory Account= $66200

Adjusting Entry = Merchandise Inventory Account - Physical Inventory Account

Adjusting Entry = $66,200 - $63,000

Adjusting Entry = $3200