Completing the physical inventory

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When using a perpetual inventory system, a journal entry is usually required after completing the physical inventory. The typical journal entry is: Multiple Choice Reducing the cost of goods sold. Reducing assets and increasing the cost of goods sold. Increasing assets and increasing the cost of goods sold. Reducing assets and increasing liabilities. At the end of last year, Games-2-Use had merchandise costing $180,000 in inventory. During January of the current year, the company purchased merchandise costing $114,000, and sold merchandise that it had purchased at a total cost of $100,000. Games-2-Use uses a perpetual inventory system. The total amount debited to the Inventory account during January was:

Reference no: EM133272755

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