Boyle Company uses the perpetual inventory system. At the end of the current fiscal year, the company's ledger for merchandise inventory has a balance of $25,000. The company takes a physical inventory count at the end of the year and the value of the inventory counted totals $23,250. What adjustment, if any, is required at the end of the period? a. No entry is required. b. Debit Merchandise Inventory for $1,750 and credit Inventory Short and Over for $1,750 c. Debit Inventory Short and Over for $1,750 and credit Merchandise Inventory for $1,750 d. Debit Income Summary for $1,750 and credit Merchandise Inventory for $1,750
Boyle Company uses the perpetual inventory system. At the end of the current fiscal year, the company's ledger for merchandise inventory has a balance of $25,000. The company takes a physical inventory count at the end of the year and the value of the inventory counted totals $23,250. What adjustment, if any, is required at the end of the period? a. No entry is required. b. Debit Merchandise Inventory for $1,750 and credit Inventory Short and Over for $1,750 c. Debit Inventory Short and Over for $1,750 and credit Merchandise Inventory for $1,750 d. Debit Income Summary for $1,750 and credit Merchandise Inventory for $1,750
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 3MC: Under the periodic inventory system, what account is debited when an estimate is made for the cost...
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Boyle Company uses the perpetual inventory system. At the end of the current fiscal year, the company's ledger for merchandise inventory has a balance of $25,000. The company takes a physical inventory count at the end of the year and the value of the inventory counted totals $23,250. What adjustment, if any, is required at the end of the period? a. No entry is required. b. Debit Merchandise Inventory for $1,750 and credit Inventory Short and Over for $1,750 c. Debit Inventory Short and Over for $1,750 and credit Merchandise Inventory for $1,750 d. Debit Income Summary for $1,750 and credit Merchandise Inventory for $1,750
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