A company used a perpetual inventory system. By physical count, ending Merchandise Inventory is 90,200 . The balance in the Merchandise Inventory account is 93,700 . The adjusting entry is
a. debit to Income Summary, 3,500; credit Merchandise Inventory, 3,500.
b. debit to Merchandise Inventory, 3,500; credit Income Summary, 3,500.
c. debit to Cost of Goods Sold, 3,500; credit Merchandise Inventory, 3,500.
d. debit to Income Summary, 3,500; credit Cost of Goods Sold, 3,500.
e. debit to Merchandise Inventory, 3,500; credit Cost of Goods Sold, 3,500.
Question 2
Accumulated Depreciation, Equipment appears in which column of the worksheet?
a. Income Statement, DR
b. Income Statement, CR
c. Balance Sheet, DR
d. Balance Sheet, CR
