Waec Model Questions Vol1 2024 Financial Accounting Question 14

Practice objective / multiple choice question 14 from the 2024 Waec Model Questions Vol1 Financial Accounting examination.

Waec Model Questions Vol1 2024 Financial Accounting Objective / Multiple Choice Medium Difficulty
Question 14 WAEC_MODEL_QUESTIONS_VOL1 • 2024 • FINANCIAL_ACCOUNTING • objective

The Merchandise Inventory ledger of Delta Stores opens with a debit balance of ₦15,000. During the month the following entries are posted to the ledger: purchases on credit ₦22,500; purchase returns ₦1,200 (credit side); freight‑in ₦800; cost of goods sold ₦28,000 (debit side). A physical count at month‑end indicates that the inventory on hand should be ₦9,500. Calculate the closing balance of the Merchandise Inventory ledger after posting the above entries and determine the amount of the inventory adjustment entry required to bring the ledger balance to the physical‑count amount.

Answer Options

A. Closing balance = ₦9,400 debit; adjustment entry = ₦300 debit to inventory (and ₦300 credit to inventory over\/shortage)
B. Closing balance = ₦9,600 debit; adjustment entry = ₦500 debit to inventory (and ₦500 credit to inventory over\/shortage)
Correct Answer C. Closing balance = ₦9,500 debit; adjustment entry = ₦400 debit to inventory (and ₦400 credit to inventory over/shortage)
D. Closing balance = ₦9,500 debit; adjustment entry = ₦350 debit to inventory (and ₦350 credit to inventory over\/shortage)
Correct Answer
C
Correct Option:
Closing balance = ₦9,500 debit; adjustment entry = ₦400 debit to inventory (and ₦400 credit to inventory over/shortage)

About This Question

This is Waec Model Questions Vol1 2024 Financial Accounting Question 14. It is one of the objective questions from the 2024 Waec Model Questions Vol1 Financial Accounting examination.

Difficulty level: Medium .

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