Use the Following Information for the Following Questions:
the Following $\$ 585,000$

question 73

Multiple Choice

Use the following information for the following questions:
The following information is available for Anselmo Corporation's inventories:
December 31, 2019:
At cost: $\$ 585,000$
At lower of cost and net realizable value (NRV) : $\$ 525,000$
December 31, 2020:
At cost: $\$780,000$
At lower of cost and net realizable value (NRV) : $740,000 Anselmo uses a periodic inventory system and an allowance account to adjust its inventory from cost to the lower of cost and NRV.
-Anselmo's 2020 journal entry to adjust its inventory from cost to the lower of cost and net realizable value (NRV) will include a

• A) debit of $40,000 to Loss on Inventory Due to Decline in NRV.
• B) debit of $40,000 to Allowance to Reduce Inventory to NRV.
• C) debit of $20,000 to Allowance to Reduce Inventory to NRV.
• D) credit of $40,000 to Recovery of Loss Due to Decline in Inventory.

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Definitions:

Alpha Waves

Brainwave patterns associated with a relaxed yet awake state, typically occurring when a person is calm and alert.

Sleep Spindles

Short bursts of brain activity characterized by rapid oscillations, observed in EEG readings during certain stages of sleep.

Manifest Content

According to Freudian psychoanalytic theory, the surface level of dreams, containing the dream symbols that are remembered upon waking.

Latent Content

In psychoanalysis, the deeper, symbolic meanings and thoughts that lie beneath the manifest content of dreams or actions.