Abel Company Must Write Down Its Inventory by $30,000 to the Net

question 58

Multiple Choice

Abel Company must write down its inventory by $30,000 to the net realizable value of $450,000 at December 31,2019.What is the effect of this write-down on the year 2019 financial statements?

• A)Decrease cost of goods sold.
• B)Decrease ending inventory on the balance sheet.
• C)Increase pretax income.
• D)Decrease accounts payable.

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