A Company Uses the Perpetual Inventory System

Multiple Choice

A company uses the perpetual inventory system.The inventory account balance is $50,000.An actual count of inventory reveals that actual inventory is $43,000.Which of the following would be included in the required adjusting entry?

A) A $43,000 credit to Inventory would be required.
B) A $50,000 debit to Cost of goods sold would be required.
C) A $7,000 credit to Cost of goods sold would be required.
D) A $7,000 credit to Inventory would be required.