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

---

Definitions:

Techno-overload

The stress or pressure felt by individuals due to the overwhelming amount of technology they are required to interact with or manage.

Internal Locus

The belief that one controls their own destiny and outcomes are a result of personal effort rather than external forces.

External Locus

A belief that outcomes in one’s life are due to external forces or circumstances beyond one's control.

Self-esteem

An individual's overall subjective evaluation of their own worth or value.