Dakota Industries Has Two Items in Inventory as of December

question 33

Multiple Choice

Dakota Industries has two items in inventory as of December 31, 2010. 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 2010, 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.

---

Definitions:

Implicit Selves

The unconscious aspects of the self, including attitudes and beliefs that influence behavior without conscious awareness.

Explicit Selves

The aspects of an individual's self-concept that are consciously recognized and expressed.

Independent Self

A concept in psychology referring to individuals who perceive themselves as distinct and autonomous, with an emphasis on personal goals and self-reliance.

Interdependent Self

A concept emphasizing the relational aspect of self-identity, where an individual's sense of self is closely linked to their relationships and community.