QUESTION 25Zenith Company's Merchandise Inventory account at year-end has a balance of $91,820, but a physical count reveals that only $90,450 of inventory exists. The adjusting entry to record this $1,370 of inventory shrinkage is: Account TitleDebitCreditCost of Goods Sold90,450 Merchandise Inventory 90,450 Account TitleDebitCreditInventory Shrinkage Expense1,370 Cost of Goods Sold 1,370 Account TitleDebitCreditPurchases Discounts1,370 Cost of Goods Sold 1,370

Inventory shrinkage happens when there are less items in stock than are indicated on the inventory…

Answered: QUESTION 25 Zenith Company's…

Accounting

27th Edition

ISBN:9781337272094

Author:WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.

Publisher:WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.

Chapter6: Accounting For Merchandising Businesses

Section: Chapter Questions

Problem 6.36EX: Cost of merchandise sold and related items The following data were extracted from the accounting...

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QUESTION 25

Zenith Company's Merchandise Inventory account at year-end has a balance of $91,820, but a physical count reveals that only $90,450 of inventory exists. The adjusting entry to record this $1,370 of inventory shrinkage is:

Account Title	Debit	Credit
Cost of Goods Sold	90,450
Merchandise Inventory		90,450

Account Title	Debit	Credit
Inventory Shrinkage Expense	1,370
Cost of Goods Sold		1,370

Account Title	Debit	Credit
Purchases Discounts	1,370
Cost of Goods Sold		1,370

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