Suppose Dave’s Discount’s Inventory account showed a balance of $8,000 before the yearend 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 Inventory |
600 |
600 |
|
b. |
Inventory Accounts receivable |
600 |
600 |
|
c. |
Accounts payable Inventory |
600 |
600 |
|
d. |
Inventory Cost of goods sold |
600 |
600 |