Information about Q-mart's Inventory appears In the following table. When LCM Is applied to the whole Inventory, the Merchandise Inventory account

Which statement below is correct regarding the purpose of taking a physical inventory count? (Check
all that apply.)

The physical count is used to determine if there has been any theft, loss, damage or
errors in inventory.
The physical count is used to adjust the Inventory account balance to the actual inventory
available.
The physical count is used to determine if customers are paying within the discount
period.
The physical count of inventory is optional under U.S. GAAP and required under IFRS.
The physical count is used to determine if management needs to reassign sales
responsibilities.


Information about Q-mart's Inventory appears In the following table. When LCM Is applied to the
whole Inventory, the Merchandise Inventory account must be adjusted from the $1, 700 recorded
cost down to the $1,620 market amount. Demonstrate the required adjusting entry by choosing the
correct answer below
Item Units Cost/ Market, Total Total
Unit Cost Market
Bikes:
Bike A 10 $50 $52 $500 $520
Bike B 20 $30 $28 $600 $560
Scooters:
Scooter A 10 $10 $9 $100 $90
Scooter B 25 $20 $18 $500 $450
Totals $1,700 $1,620


Debit Merchandise Inventory $80.
Debit Cost of Goods Sold $80.
Credit Cost of Goods Sold $80.
Credit Loss on Inventory $80.