Mariah Company Has Inventory at the End of the Year

question 32

Multiple Choice

Mariah Company has inventory at the end of the year with a historical cost of $73,000.Mariah Company uses the perpetual inventory system.Under the LCM rule,the current replacement cost is $70,600.The company uses LIFO.Under U.S.GAAP,the journal entry to record the write-down to LCM will:

• A)debit Cost of Goods Sold for $2,400 and credit Inventory for $2,400.
• B)debit Cost of Goods Sold for $2,400 and credit Purchases for $2,400.
• C)debit Inventory for $2,400 and credit Cost of Goods Sold for $2,400.
• D)debit Purchases for $2,400 and credit Cost of Goods Sold for $2,400.

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Definitions:

Form Control

An interactive component in graphical user interfaces that allows users to enter data, make selections, or control the interface, such as text boxes, buttons, or dropdown lists.

Size Options

A set of pre-defined or customizable dimensions that can be applied to objects, text, or elements in software applications.

Selected Controls

Specific interactive elements or mechanisms in a graphical user interface that have been chosen or highlighted by the user for interaction.

Custom Groups

User-defined collections or categories in software applications, allowing for customized organization of information or tasks.