Answer:
The correct answer is option (a).
Explanation:
According to the scenario, the given data are as follows:
Ending inventory = $4,350
Unadjusted inventory = $4,500
So, we can calculate the cost of goods sold by using following formula:
Cost of goods sold = Unadjusted inventory - Ending inventory
By putting the value in the formula, we get
Cost of goods sold = $4,500 - $4,350 = $150
As the cost of goods sold is in positive so it will be debited.
So, the adjusting entry are as follows:
Cost of goods sold A/c Dr $150
To Inventory $150
(Being cost of goods sold is recorded)
