10$10$9$100$90Scooter B25$20$18$500$450Totals $1,700$1,620Multiple choice question.Debit Cost of Goods Sold $80.Credit Cost of Goods Sold $80.Credit Loss on Inventory $80.Debit Merchandise Inventory $80.
Question
10990Scooter B2518450Totals 1,620Multiple choice question.Debit Cost of Goods Sold 80.Credit Loss on Inventory 80.
Solution
It seems like you're asking about accounting entries related to inventory. Here are the steps to answer your question:
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Identify the transaction: The transaction here is a decrease in the value of inventory. This could be due to several reasons such as theft, damage, or simply an error in counting.
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Determine the accounts affected: The accounts affected by this transaction are "Cost of Goods Sold" and "Merchandise Inventory".
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Determine the amount: The amount is $80.
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Apply the rules of debit and credit: In accounting, a decrease in an asset (Merchandise Inventory in this case) is credited. An increase in an expense (Cost of Goods Sold in this case) is debited.
So, the correct entries would be:
- Debit Cost of Goods Sold $80
- Credit Merchandise Inventory $80
This means that the value of the inventory decreases (credit) and the cost of goods sold increases (debit), reflecting the loss of inventory.
Similar Questions
The entry to record a sale of $750 (cost of goods $400) with terms of 2/10, n/30 will include a: Group of answer choices debit to cost of sales for $400. credit to cost of sales for $400. debit to inventory for $400. credit to inventory for $350.
X-Mart uses the perpetual inventory system to account for its merchandise. On May 1, it sold $1,400 of merchandise for cash. The original cost of the merchandise to X-Mart was $500. Demonstrate the required journal entry to record the sale and the cost of the sale by selecting all of the correct actions below.Multiple select question.Debit Cost of Goods Sold $500.Credit Sales $1,400.Credit Cost of Goods Sold $500.Credit Accounts Receivable $1,400.Debit Sales $1,400.Credit Merchandise Inventory $500.Debit Merchandise Inventory $500.Debit Cash $1,400.
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ABC Co. uses a perpetual inventory system and uses the FIFO cost flow assumption. During the month, it had two sales. Calculate the dollar value of its cost of goods sold for the first sale made on Jan. 10. DateActivity Jan 1Beginning Inventory 8 @ $12 = $96Jan 5Purchase12 @ $15= $180Jan 25Purchase10 @ $18= $180Jan 10Sale11 @ $50 eachJan 30Sale3 @ $55 eachMultiple choice question.$195$141$550$180
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