Suppose Dave’s Discount’s Inventory account showed a balance of $8,000 before the year end adjustments. The physical count of goods on hand totaled $7,400. To adjust the accounts, Dave Marshall would make the following entry:
|
a. |
Cost of goods sold |
600 |
|
|
Inventory |
600 |
||
|
b. |
Inventory |
600 |
|
|
Accounts payable |
600 |
||
|
c. |
Accounts payable |
600 |
|
|
Inventory |
600 |
||
|
d. |
Cash |
600 |
|
|
Inventory |
600 |