When a Company Uses the Perpetual Inventory Method, Which of the Following

question 140

Multiple Choice

When a company uses the perpetual inventory method, which of the following would be the entry to adjust inventory to lower-of-cost-or-market?

• A)Debit Purchases and credit Merchandise Inventory
• B)Debit Inventory and credit Purchases
• C)Debit Cost of Goods Sold and credit Merchandise Inventory
• D)Debit Inventory and credit Cost of Goods Sold

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