A client transfers inventory between warehouses within the same company. Both warehouses carry the inventory at the same cost. In the journal entries for the transfer, the client finds that the batch amount is blank.
Identify the correct reason why this happened.
Select an option, then click Submit answer.
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The client should reverse the transfer transaction, create an issue to remove quantity from the old location, and then create an adjustment to add quantity to the new location.
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The AAIs are set up incorrectly. Correct the AAIs so that the journal entry amount will appear.
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No correction is necessary. A batch with a blank amount is correct.
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The cost is incorrect for one of the warehouses. The client should reverse the transfer, verify the cost, and re-enter the transaction.
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The client should carry the inventory cost at different amounts for each warehouse. This approach ensures that a variance journal entry is created.
