Adjusting Entries A company uses a calendar year. The following figures are avai

Question

Adjusting Entries A company   uses a calendar year.  The following   figures are available: Inventory,   January 1 :   $405,000 (by physical   count) Inventory,   December 31:   $411,000 (by physical   count) Record the   adjusting entry, assuming that the company uses the perpetual   Inventory System and the book balance of the ending inventory on   December 31 is $408,000. DESCRIPTION DEBIT CREDIT Adjusting Entries A company   uses a calendar year.  The following   figures are available: Inventory,   January 1 :   $405,000 (by physical   count) Inventory,   December 31:   $411,000 (by physical   count) Record the   adjusting entry, assuming that the company uses the perpetual   Inventory System and the book balance of the ending inventory on   December 31 is $408,000. DESCRIPTION DEBIT CREDIT

Explanation / Answer

Debit: Merchandise inventory 3,000

Credit: Cost of goods sold 3,000

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