Using a Periodic Inventory System, Bertram Company Records Inventory at Lower

question 75

Multiple Choice

Using a periodic inventory system, Bertram Company records inventory at lower of cost or NRV using the direct method. The end-of-the-year journal entries to adjust inventories would include

• A) a debit to Inventory to close beginning inventory at cost value.
• B) a debit to Inventory to close ending inventory at market value.
• C) a debit to Loss Due to Write-Down of Inventory for the excess of cost over market value.
• D) a credit to Allowance to Reduce Inventory for the excess of market over cost value.

---

Definitions:

Cyclical

Describes a process that occurs in a repeated sequence or in cycles.

Carbon-Rich Remains

Organic material that has a high carbon content, often found in fossils or peat, resulting from the decomposition of living organisms.

Natural Gas

A fossil fuel consisting primarily of methane, used as an energy source for heating, cooking, and electricity generation.

Autotrophic

Referring to organisms that can produce their own food from inorganic substances using light or chemical energy, such as plants and some bacteria.