Question: When using a perpetual inventory system, the adjusting entry required when merchandise inventory records do not agree with the physical count requires reporting again when

When using a perpetual inventory system, the adjusting entry required when merchandise inventory records do not agree with the physical count requires reporting again when actual is lower than records. has an effect on cost of goods sold. has no effect on cost of goods sold. requires reporting a loss when actual is higher than records

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!

Please help me Question 14 When using a perpetual inventory system, the adjusting entry required when merchandise inventory records do not agree with the physical count requires reporting a loss when...

When using a perpetual inventory system, the adjusting entry required when merchandise inventory records do not agree with the physical count requires reporting a loss when actual is higher than...

1. When using a perpetual inventory system, the journal entry to record the cost of merchandise sold is: 2. If the buyer is to pay the freight costs of delivering merchandise, delivery terms are...

Velocity Bikes uses the perpetual moving average Inventory method to account for inventory costs. On March 1, the company's records showed Beginning Inventory of 50 bikes on hand with a total cost of...

Q 101 The Sales Discounts account is classified as A) an asset account. B) a contra asset account. C) an expense account. D) a contra revenue account. Q 102 As an incentive for customers to purchase...

Question 1(1 point) A company shows the following balances: Sales$1,000,000 Sales returns and allowances250,000 Cost of goods sold600,000 Operating expenses75,000 . What is the company's profit...

Please help me with the following. I have attached (3)assignments. Three assignments should be submitted when completed. Please follow directions and do no submit incomplete work. Highlight all...

-k Chapter 14 Part 1 uestion 1 of 5 Identify each statement as true or false. 1. 2. 3. Financial accounting focuses on providing information to internal users. Staff positions are directly involved...

can someone help if this answers are correct? I found out that some of this answers are not correct. Thank you Quiz 2 1. One advantage to using a perpetual inventory system is that the company never...

8. Which of the following accounts has a normal debit balance? a. Accounts Payable b. Sales Returns and Allowances c. Sales d. Interest Revenue 9. Using a perpetual inventory system, the entry to...

The current asset sections of the balance sheets of three companies follow. Which company is a service company? Which is a merchandiser? Which is a manufacturer? How can youtell? Flash Company Zippy...

It has been argued that training can lead to turnover, but career development can reduce it. Differentiate between training and career development. Why might training lead to turnover whereas career...

( 2 points ) If an investor buys a put option now with an exercise price of $ 6 0 that is in - the - money by $ 2 and pays $ 5 , the price of the underlying is closest to a . $ 5 3 b . $ 5 8 c . $ 6...

Scenario: A Multi-national Corporation called The Globe has created a subsidiary called Thirst in an under-developed country called non-potable waters. This hosting country suffers from a severe...

(Appendices) Describe the difference between F.O.B. shipping point and F.O.B. destination. LO56

(Appendices) INTERNAL CONTROL FOR SALES. Yancys Hardware has three stores. Each store manager is paid a salary plus a bonus on the sales made by his or her store. On January 5, 19x6, Bill Slick,...

(Appendices) ETHICS AND INVENTORIES. Mary Cravens is an accountant for City Appliance Corporation. One of Marys responsibilities is developing the ending inventory amount for the calculation of cost...