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:
A. Reduce its cost of goods sold by $7,000.
B. Record a $7,000 current liability.
C. Reduce the balance in its Inventory control account and inventory subsidiary ledger by $7,000.
D. Reduce the balance in the Inventory control account and record a current liability, both in the amount of $7,000.
C
Business
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