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

question 154

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 Inventory
• B) Debit Inventory and credit Purchases
• C) Debit Cost of goods sold and credit Inventory
• D) Debit Inventory and credit Cost of goods sold

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Definitions:

Hawthorne

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The adequate provision of light in a space, ensuring visibility and contributing to the comfort and productivity of individuals.

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The study of the human interface with the environment and machines.

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The social science that studies the production, distribution, and consumption of goods and services, focusing on how individuals, businesses, governments, and nations make choices on allocating resources.