Uptown Department Store uses the perpetual inventory system and has ending inventory with a historical cost of $620,000. The current replacement cost of the inventory is $608,000 The net realizable value is $640 000 The company uses FO adjustments at the end of the period, the cost of goods sold account has a balance of $910,000 Which journal entry is required under US GAAP? OA. debit Inventory for $12.000 and credit Cost of Goods Sold for $12,000 OB. debit Inventory for $20,000 and credit Cost of Goods Sold for $20,000 OC. debit Cost of Goods Sold for $20,000 and credit Inventory for $20,000 Goods Sold for $12,000 and credit Inventory for $12,000 OD. debit Cost
Uptown Department Store uses the perpetual inventory system and has ending inventory with a historical cost of $620,000. The current replacement cost of the inventory is $608,000 The net realizable value is $640 000 The company uses FO adjustments at the end of the period, the cost of goods sold account has a balance of $910,000 Which journal entry is required under US GAAP? OA. debit Inventory for $12.000 and credit Cost of Goods Sold for $12,000 OB. debit Inventory for $20,000 and credit Cost of Goods Sold for $20,000 OC. debit Cost of Goods Sold for $20,000 and credit Inventory for $20,000 Goods Sold for $12,000 and credit Inventory for $12,000 OD. debit Cost
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Uptown Department Store uses the perpetual inventory system and has ending inventory with a historical cost of $620,000. The current replacement cost of the inventory is $608,000 The net realizable value is $640 000 The company uses LIFO Before any
adjustments at the end of the period, the cost of goods sold account has a balance of $910,000 Which journal entry is required under US. GAAP?
OA. debit Inventory for $12,000 and credit Cost of Goods Sold for $12,000
OB. debit Inventory for $20,000 and credit Cost of Goods Sold for $20,000
OC. debit Cost of Goods Sold for $20,000 and credit Inventory for $20,000
OD. debit Cost of Goods Sold for $12.000 and credit Inventory for $12.000
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