Ask Question
BusinessBusiness
1 October, 18:04

Under a perpetual inventory system, when a shortage is discovered a. Merchandise Inventory is debitedb. Cost of Merchandise Sold is creditedc. Inventory Shortages is creditedd. Merchandise Inventory is credited

+3
Answers (1)
  1. 1 October, 18:14
    0
    Answer: d. Merchandise Inventory is credited

    Explanation: merchandise Inventory is a current asset showing the cost of goods on hand and available for sale at any given moment in time and is continuously updated to reflect items on hand under the perpetual inventory system. Under the perpetual inventory system, the Merchandise Inventory account is debited and credited for each purchase and sale respectively. This effectively shows the current balance in the account at all time. However, during shortages, the Merchandise Inventory is credited.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “Under a perpetual inventory system, when a shortage is discovered a. Merchandise Inventory is debitedb. Cost of Merchandise Sold is ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers
You Might be Interested in
Which of the following is a financial crisis? A. Rebellion in Mexico and the assassination of a presidential candidate shook investors' faith. B. The World Bank financed infrastructure projects in emerging economies. C.
Answers (1)
Match the role with the correct example of someone playing that role. Worker Car owner Producer Factory owner Consumer Auto mechanic
Answers (2)
Which of the following is a way to use credit responsibly?
Answers (1)
Assume that banks do not hold excess reserves and that households do not hold currency, so the only form of money is demand deposits. to simplify the analysis, suppose the banking system has total reserves of $300.
Answers (1)
Incorporators are required to sign the charter, deliver it to the proper state officials, and purchase a certain percentage of the initial stock offering. True/False
Answers (1)
New Questions in Business
In which year were tobacco commercials banned from network television in the united states?
No Answers
Maggie's manager notices that she exhibits an external locus of control when she speaks about her work. Her manager should Group of answer choices a. direct Maggie toward a job with more autonomy. b.
Answers (1)
Consider this argument: "The kidnappers have taken eight people hostage and are holding them at a farmhouse just outside town. If the SWAT team assaults the farmhouse, the hostages could be killed.
Answers (1)
Rent seeking is an attempt to A. use the government for individual benefit at the expense of others. Regulatory capture is an example of this, where a regulatory agency makes decisions benefiting the firm being regulated. B.
Answers (1)
An Insurance company is a business in which it pays to the company if there is a loss, damage, treatments or injury for the payment of premium amount. It calculates the risks that has occurred and pays to compensate the premium amount.
Answers (1)
Home » Business » Under a perpetual inventory system, when a shortage is discovered a. Merchandise Inventory is debitedb. Cost of Merchandise Sold is creditedc. Inventory Shortages is creditedd. Merchandise Inventory is credited
Sign Up Forgot Password?