Question

The inventory account has a balance of $1,335,300, while physical inventory indicates that $1,401,600 of merchandise is on hand. What is the amount of the inventory adjustment needed?

a) $66,300
b) $66,600
c) $66,900
d) $67,200

Answer 1

The amount of inventory adjustment needed is $66,300. This is calculated by subtracting the inventory account balance from the physical inventory count.

Step-by-step explanation:

The student asked for the amount of the inventory adjustment needed when the inventory account balance is $1,335,300 and the physical inventory indicates $1,401,600 of merchandise on hand.

To calculate this adjustment, we subtract the account balance from the physical inventory count: $1,401,600 - $1,335,300 = $66,300.

Therefore, the inventory adjustment that is needed is $66,300.

The amount of the inventory adjustment needed can be calculated by finding the difference between the balance in the inventory account and the physical inventory on hand.

In this case, the balance in the inventory account is $1,335,300 and the physical inventory on hand is $1,401,600.

To calculate the inventory adjustment, we subtract the balance in the inventory account from the physical inventory on hand:

$1,401,600 - $1,335,300 = $66,300.

Therefore, the amount of the inventory adjustment needed is $66,300. Therefore, the correct answer is a) $66,300.