Kim's Retail Had 500 Units of Inventory on Hand at the End

question 86

Multiple Choice

Kim's Retail had 500 units of inventory on hand at the end of the year.These were recorded at a cost of $17 each using the last-in,first-out (LIFO) method.The current replacement cost is $14 per unit.The selling price charged by Kim's Retail for each finished product is $24.In order to record the adjusting entry needed under the lower-of-cost-or-market rule,the Merchandise Inventory will be ________.

• A) debited by $7,000
• B) credited by $7,000
• C) debited by $1,500
• D) credited by $1,500

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Definitions:

Mid-Sized Companies

Businesses that occupy the middle ground in terms of their revenue, number of employees, and overall market presence, between small and large companies.

Clan Culture

An organizational culture characterized by a family-like atmosphere, where loyalty, tradition, and personal commitment are valued.

Socialization Process

The method through which individuals learn the norms, behaviors, and social skills appropriate to their society or culture.

Clan Culture

A corporate culture model that emphasizes collaboration, trust, and a family-like atmosphere within an organization.