Consider the following: March15 current year: Erin created a new inventory item named Birdbath April...
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Accounting
Consider the following:
March15 current year: Erin created a new inventory item named Birdbath April 20 current year: Erin bought 80 bags of mulch for $640.00 June 12 current year: Erin bought 75 bags of mulch for $618.75 June 15 current year: Erin sold 125 bags of mulch to Woodys Weeds When creating the item, a beginning quantity of 25 and a cost value of $23.82 per unit was mistakenly entered.
What is the effect on the General Ledger when Erin saves the new birdbath item? a) Debit Inventory for $23.82, credit Opening Balance Equity for $23.82. b) Debit Inventory for $595.50, credit Opening Balance Equity for $595.50 c) Debit Opening Balance Equity for $595.50, credit Inventory for $595.50 d) Debit Inventory Shortage for $595.50, credit Opening Balance Equity for $595.50 e) Debit Inventory Asset for $23.82, credit Inventory Shortage for $23.82
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