At year-end, the perpetual inventory records of Litwin Company showed merchandise inventory of $98,000. The company determined, however, that its actual inventory on hand was $95,700.

Required:
Record the necessary adjusting entry.

At year end the inventory value is adjusted after inventory count. the difference is charged to the cost of goods sold and Inventory is adjusted accordingly.

Difference = $98,000 - $95,700 = $2,300

Inventory will be reduced by $2,300 with a credit entry in the inventory account and this amount will be charged as an expense in the cost of goods sold account.

At year-end, the perpetual inventory records of Litwin Company showed merchandise inventory of $98,000. The company determined, however, that its actual inventory on hand was $95,700. Required: Record the necessary adjusting entry.

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At year-end, the perpetual inventory records of Litwin Company showed merchandise inventory of $98,000. The company determined, however, that its actual inventory on hand was $95,700.

Required:
Record the necessary adjusting entry.