Company a Has Inventory at the End of the Year

question 141

Multiple Choice

Company A has inventory at the end of the year with a cost of $75,000. Under the LCM rules, the value of the inventory is $72,600.The journal entry to record the write-down to LCM will:

• A) increase cost of goods sold and increase ending inventory.
• B) increase cost of goods sold and decrease ending inventory.
• C) decrease cost of goods sold and decrease ending inventory.
• D) decrease cost of goods sold and increase ending inventory.

---

Definitions:

Social Setting

A social setting is an environment or context where interactions among individuals or groups occur, influenced by cultural and social norms.

Audience-centered Approach

A method of communication that focuses on understanding and addressing the needs, interests, and expectations of the audience.

Communication Channels

Systems used to deliver messages.

Etiquette

The set of conventional rules and manners that govern social and professional behavior in society or among members of a particular profession.