The Historical Cost of Jahn Company's Ending Inventory Was Less

question 130

Multiple Choice

The historical cost of Jahn Company's ending inventory was less than the net realizable value.The company uses FIFO.Following U.S.GAAP,which journal entry is required?

• A)debit Cost of Goods Sold and credit Sales
• B)debit Inventory and credit Cost of Goods Sold
• C)debit Cost of Goods Sold and credit Inventory
• D)No journal entry is needed.

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Definitions:

Compelling Picture

An image or representation that forcefully attracts attention or interest, often used in marketing to evoke emotion.

Product Directed

Concerned with marketing or advertising strategies focused specifically on the features and benefits of a product to influence consumer purchasing decisions.

Firm Wants

Describes the specific needs or desires that a company aims to fulfill through its operations, product offerings, or strategic decisions.

Test-marketing

A strategy used by companies to evaluate the viability of a new product or service in a limited market before a wider release.