If the Inventory Shows an Actual Count of $450 and the Perpetual

Multiple Choice

If the inventory shows an actual count of $450 and the perpetual inventory according to the records shows $410, the adjusting entry for the $40 would:

A) debit Cost of Goods Sold; debit Purchase Returns and Allowances.
B) debit Cost of Goods Sold; credit Inventory.
C) debit Inventory; credit Cost of Goods Sold.
D) debit Inventory; credit Purchase Returns and Allowances.