Under the Lower of Cost and Net Realizable Value Basis

question 41

Multiple Choice

Under the lower of cost and net realizable value basis, the adjusting entry to record a decline in net realizable value below cost includes a

• A)debit to the Inventory account.
• B)debit to the Cost of Goods Sold account.
• C)credit to the Cost of Goods Sold account.
• D)credit to the Sales account.