When the physical count of Rosanna Company inventory had a cost of $4,350 at year end and the unadjusted balance in Inventory was $4,500, Rosanna will have to make the following entry:

a. Cost of Goods Sold150 Inventory150
b. Inventory150 Cost of Goods Sold150
c. Income Summary150 Inventory150
d. Cost of Goods Sold4,500 Inventory4,500

The correct answer is option (a).

Explanation:

According to the scenario, the given data are as follows:

Ending inventory = $4,350

Unadjusted inventory = $4,500

So, we can calculate the cost of goods sold by using following formula:

Cost of goods sold =  Unadjusted inventory - Ending inventory

By putting the value in the formula, we get

Cost of goods sold = $4,500 - $4,350 = $150

As the cost of goods sold is in positive so it will be debited.

So, the adjusting entry are as follows:

Cost of goods sold A/c Dr $150

To Inventory $150

(Being cost of goods sold is recorded)

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