The merchandise inventory account of a company shows a balance of $70,000 but a physical count of inventory shows $67,000 which of the following entries is required to record the shrinkage? (assume a perpetual inventory system.)
a) a $67,000 credit to merchandise inventory
b) a $70,000 debit to cost of goods sold
c) a $7,000 credit to cost of goods sold
d) a $7,000 credit to merchandise inventory

University hero is considering expanding operations beyond its healthy sandwiches. jim axelrod, vice president of marketing, would like to add a line of smoothies with a similar health emphasis. each smoothie would include two free health supplements such as vitamins, antioxidants, and protein. jim believes smoothie sales should fill the slow mid-afternoon period. adding the line of smoothies would require purchasing additional freezer space, machinery, and equipment. jim provides the following projections of net sales, net income, and average total assets in support of his proposal. sandwichesonly sandwiches and smoothies net sales $ 750,000 $ 1,350,000 net income 120,000 210,000 average total assets 350,000 750,000 return on assetschoose numerator ÷ choose denominator = return on assets÷ = return on assets÷ = profit margin÷ = profit margin÷ = asset turnover÷ = asset turnover÷ = times