Jayson Products uses a perpetual inventory system. At year-end, the Inventory account had a balance of...

Jayson Products uses a perpetual inventory system. At year-end, the Inventory account had a balance of $280,000, but a complete year-end physical inventory indicated goods on hand costing only $273,000. Jayson should:

Expert Solution

Jayson Products uses a perpetual inventory system. At year-end, the Inventory account had a balance of $280,000, but a complete year-end physical inventory indicated goods on hand costing only $273,000. Jayson should:

Reduce the balance in its Inventory control account and inventory subsidiary ledger by $7,000.(280000 - 273000 )

.

written down to $273000, and $7000 as record as loss on income statement in current period.

* the perpetual inventory system keeps track of inventory balances continuously, with updates made automatically whenever a inventory is purchased or sold. Purchases and sales returns are immediately recorded in the inventory account..

.

ekkarill92 answered 3 years ago

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