Company A recent required to record an inventory write down of $5,200 because the net realizable value of its inventory was less than cost. Which of the following journal entries would be recorded? A. Debit sales. Credit inventory. B. Debit costs of goods sold. Credit inventory. C. Debit inventory. Credit sales. D. Debit cost of goods sold. Credit sales.
Company A recent required to record an inventory write down of $5,200 because the net realizable value of its inventory was less than cost. Which of the following journal entries would be recorded? A. Debit sales. Credit inventory. B. Debit costs of goods sold. Credit inventory. C. Debit inventory. Credit sales. D. Debit cost of goods sold. Credit sales.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Company A recent required to record an inventory write down of $5,200 because the net realizable value of its inventory was less than cost. Which of the following journal entries would be recorded?
A. Debit sales. Credit inventory.
B. Debit costs of goods sold. Credit inventory.
C. Debit inventory. Credit sales.
D. Debit cost of goods sold. Credit sales.
Expert Solution
Step 1
Journal Entry: Journal entry is the act of keeping records of transactions in an accounting journal. An accounting journal shows a company's debit and credit balances.
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