At the End of Its First Year of Business,Payless,Inc

question 86

Essay

At the end of its first year of business,Payless,Inc.had Sales of $800,000 and Cost of goods sold of $500,000 prior to a lower-of-cost-or-market write down.Payless reported its inventory at the lower market value of $90,000 instead of the cost of $100,000.The adjusting entry to record the write down included a decrease to Inventory and Cost of goods sold.
Required: Put an X in the appropriate box to show the effect of lower-of-cost-or-market write down:

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Definitions:

Influences

Forces or factors that can directly or indirectly affect individuals' behaviors, beliefs, or decisions.

Genetic Influences

The impact of genes inherited from parents on the traits, behaviors, and characteristics of an individual.

Personality

The combination of characteristics or qualities that form an individual's distinctive character, influencing their behaviors and attitudes.

Life Span

Represents the maximum duration an organism can live under ideal conditions, or in human studies, it often refers to the period from birth to death, focusing on various stages of development and aging.