The Council of the Blind Store Has Ending Inventory with a Historical

question 6

Multiple Choice

The Council of the Blind Store has ending inventory with a historical cost of $630,000.Assume the store uses the perpetual inventory system.The current replacement cost of the inventory is $608,000.The net realizable value is $650,000.Before any adjustments at the end of the period,the cost of goods sold account has a balance of $900,000.What journal entry is required under U.S.GAAP?

• A)debit Cost of Goods Sold for $20,000 and credit Inventory for $20,000
• B)debit Inventory for $20,000 and credit Cost of Goods Sold for $20,000
• C)debit Cost of Goods Sold for $22,000 and credit Inventory for $22,000
• D)debit Inventory for $22,000 and credit Cost of Goods Sold for $22,000

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Definitions:

Association

A group of people or organizations that come together for a common purpose or to share interests.