If the Inventory Shows an Actual Count of $405 and the Perpetual

Multiple Choice

If the inventory shows an actual count of $405 and the perpetual inventory according to the records shows $420, the adjusting entry for the $15 would:

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