Asked by
Sherry Rasul
on Nov 14, 2024
Verified
A merchandising company using a perpetual system may record an adjusting entry by
A) debiting Income Summary.
B) crediting Income Summary.
C) debiting Cost of Goods Sold.
D) debiting Sales Revenue.
Perpetual System
An inventory system that records the sale or purchase of inventory immediately through the use of computerized point-of-sale systems and enterprise asset management software.
Adjusting Entry
A journal entry made at the end of an accounting period to allocate income and expenditures to the appropriate period for accurate financial reporting.
- Gain an understanding of the methods used in modifying entries and their influence on the financial statements.
Verified Answer
JT
Learning Objectives
- Gain an understanding of the methods used in modifying entries and their influence on the financial statements.