Question

​Syrio's Snowboards uses the perpetual inventory system. At year end the general ledger indicated that the company had a balance of​ $24,000 in the Inventory account. Actual inventory on hand per a physical count was​ $19,000. What action does the company now need to​ take?

Answer 1

Answer:

The correct answer to the following question is that the Syrio's snowboards should debit the cost of goods sold account and credit the inventory account by $5000.

Explanation:

It is given that in the books , the inventory amounts to $24,000 but physically on $19,000 of inventory is present. Which means there is shortage in the inventory , that means the company would have to decrease the amount of inventory in the books. For that they will debit the cost of goods sold account and credit the inventory account by $5000 ( $24,000 - $19,000 ).