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Question 8: A delivery document is created for a shipment of 10 printers to Madison and Daughters Inc. One of the
employees creates an A/R invoice but forgets to reference the existing delivery document. Madison and
Daughters Inc. uses perpetual inventory. What unplanned effect will occur by posting these two unrelated
documents in the system?
A. The customer will be charged for 20 printers.
B. There will be a posting to an inventory variance account.
C. The invoice will reverse the previous entry to the cost of sales account.
D. The inventory account will be credited for 20 printers.
Correct Answer: D
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