Select the correct answer.
Adidea Corp. has a year-end inventory of $85,000. However, the general ledger account shows a debit balance of $95,000. The company must
change the general ledger to reflect the actual inventory. Assuming the company uses a perpetual system, which adjusting worksheet entry does it
need to use?
X A. Inventory (debit) 10,000
Cost of goods sold (credit) 10,000
B. Inventory change (debit) 10,000 Inventory (credit) 10,000
OC. Cost of goods sold (debit) 10,000 Inventory change (credit) 10,000
Inventory (debit) 10,000
Inventory change (credit) 10,000
D.
