A Company Discovered That Inventory That Cost $1000 and Normally

question 29

Multiple Choice

A company discovered that inventory that cost $1000 and normally sells for $1200 has become obsolete and will be scrapped next month.The effect of the adjusting journal entry is to:

• A) decrease profit by $1000 and decrease total assets by $1000.
• B) decrease profit by $1200 and decrease total assets by $1000.
• C) decrease profit by $1200 and decrease total assets by $1200.
• D) decrease profit by $1000 and not affect total assets.

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Definitions:

Proposition

A declaration that communicates an opinion or judgment.

Bounty Hunter

A person who pursues criminals or fugitives for a monetary reward.

Subjects

In grammar, the part of a sentence that performs the action or is described. In philosophy, the conscious beings that perceive, think, and feel.

Equivalent

Equal in value, function, or meaning, often used in mathematics to describe expressions that have the same value.