Jayson products uses a perpetual inventory system. at year-end, the inventory account had a balance of $280,000, but a complete year-end physical inventory indicated goods on hand costing only $273,000. jayson should:
Jayson should :
(1) Reduce the balance in its Inventory controlling account and inventory subsidiary ledger by $7,000.
(2) Record a $7000 current liability.
(3) Reduce the balance in its inventory controlling account and inventory subsidiary ledger by $7000
(4) Reduce the balance in the inventory controlling account and record a current liability both in the amount of $7000.
