At the End of Its Accounting Year, Colin Corp

Multiple Choice

At the end of its accounting year, Colin Corp.'s physical inventory count indicated that 180,000 units of inventory, costing $1.75 each, were on hand. The company's perpetual inventory system reported a balance of $357,600. The year-end adjusting entry is

A) debit Inventory and credit Loss on Inventory Due to Count, $42,600.
B) debit Loss on Inventory Due to Count and credit Inventory, $42,600.
C) debit Inventory and credit Loss on Inventory Due to Count, $92,400.
D) debit Loss on Inventory Due to Count and credit Inventory, $92,400.