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NEW QUESTION: 1
When a perpetual inventory system is used and a difference exists between the perpetual inventory amount balance and the physical inventory count. a separate entry is needed to adjust the perpetual inventory amount. Which of the following demonstrates that adjusting entry?
A. Extraordinary loss due to write-down of inventory
B. Inventory over and short Inventory
C. Extraordinary loss due to write-down of inventory Allowance for inventory shortages
D. Cost of goods sold Retained earnings appropriated for shortages
Answer: B
Explanation:
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A. Option B
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D. Option C
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Explanation
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