The Journal Entry to Record a Write-Down of Inventory from Cost

question 88

Multiple Choice

The journal entry to record a write-down of inventory from cost to its lower market value includes a:

• A)debit to Inventory.
• B)credit to Inventory.
• C)credit to Sales Revenue.
• D)debit to Sales Revenue.

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Definitions:

Purposeful Behavior

Actions taken with specific goals in mind, often reflecting rational decision-making processes.

Costs and Benefits

An analysis or evaluation framework, often used in economics and business, that compares the advantages and disadvantages or gains and costs of a certain action.

Decision Making

The cognitive process of selecting a course of action from among multiple alternatives.

Macroeconomics

The part of economics concerned with the performance and behavior of the economy as a whole. Focuses on economic growth, the business cycle, interest rates, inflation, and the behavior of major economic aggregates such as the household, business, and government sectors.