Jeremy owns a cafe and uses normal costing. At year end, they have an applied material overhead of $90,000. Their actual material overhead was $83,000. Using the direct write-off method, what would their adjusting journal entry be to correct the either over or under applied material overhead?

A) Debit material overhead applied and credit material overhead actual.

B) Debit cost of goods sold and credit material overhead costs.

C) Debit material overhead control and credit cost of goods sold.

D) Debit material overhead actual and credit material overhead applied.

Answer rating: 100% (QA)

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