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

Companies hd and ld are both profitable, and they have the same total assets (ta), total invested capital, sales (s), return on assets (roa), and profit margin (pm). both firms finance using only debt and common equity. however, company hd has the higher total debt to total capital ratio. which of the following statements is correct? a) company hd has a higher assets turnover than company ld. b) company hd has a higher return on equity than company ld. c) none of the other statements are correct because the information provided on the question is not enough. d) company hd has lower total assets turnover than company ld. e) company hd has a lower operating income (ebit) than company ld