The trial balance of Marley Motorcycles shows Merchandise Inventory of $80,000. Based on a count taken on
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The trial balance of Marley Motorcycles shows Merchandise Inventory of $80,000. Based on a count taken on December 31, merchandise inventory at the end of the year actually totaled $92,000. The company uses a periodic inventory system. The adjusting entry to record the new merchandise inventory balance would be what?
When the periodic inventory system is used, the only entries to the inventory asset account is the adjusting entries at the end of the accounting period, as purchases are recorded against purchases expense account.
Related Book For
Accounting Principles
ISBN: 978-0470533475
9th Edition
Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso
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