Dakota Industries Has Two Items in Inventory as of December

question 12

Multiple Choice

Dakota Industries has two items in inventory as of December 31, 2015. Each item was purchased for $52. Company management chose to write down Item #1 to $39, which at year-end was assessed to be its market value. Management did not write down Item #2 because its market value was estimated to be greater than $52. During 2016, each item was sold for $63 cash.
If Dakota uses the perpetual inventory method, which of the following would be included in the entry or entries to record the sale of Item #1?

• A)A debit to Sales for $63.
• B)A credit to Inventory for $52.
• C)A debit to Cost of Goods Sold for $39.
• D)A credit to Cost of Goods Sold for $52.

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Definitions:

ICD-9 Manual

The International Classification of Diseases, Ninth Revision, a medical classification list by the World Health Organization for coding diseases, signs and symptoms, abnormal findings, complaints, and social circumstances.

Alphabetic Index

A system of organizing information or items based on the letters of the alphabet, to facilitate easy reference and retrieval.

E Codes

Codes used in health care coding systems to classify external causes of injuries, poisoning, and other adverse effects.

Primary Diagnosis

The diagnosis given as the primary reason for the patient seeking care.