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Jayson Products Uses a Perpetual Inventory System

Question 58

Multiple Choice

Jayson Products uses a perpetual inventory system.At year-end,the Inventory account had a balance of $280,000,but a complete year-end physical inventory indicated goods on hand costing only $273,000.Jayson should:


A) Reduce its cost of goods sold by $7,000.
B) Record a $7,000 current liability.
C) Reduce the balance in its Inventory control account and inventory subsidiary ledger by $7,000.
D) Reduce the balance in the Inventory control account and record a current liability,both in the amount of $7,000.

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