[eagles1012]

To prepare ajusting entries and an adjusted trial balance, this information is given:

The ending inventory of merchandise is counted and determined to have a cost of $12,700 - the company uses a perpetual inventory system.
The unadjusted trial balance shows the following:
Merchandise Inventory - Dr. 12,700
Sales - Cr. 80,000
Cost of goods sold - Dr. 57,991

Assuming the company's adjusted balance for Merchandise inventory matches the year end physical count, how would the journal entry be listed?

[pready]

There is no adjusting entry required if the physical invenotry count matches the account balance.