Given the Following Information for the Raquel Company If the Allowance Method of Recording Lower of Cost or Market}

question 68

Multiple Choice

Given the following information for the Raquel Company:
$\begin{array}{c}\begin{array}{l}\underline{\text { Market} } \\\$ 500 \\650 \\730 \end{array}\begin{array}{lll}\underline{\text { Cost}}\\ \$ 500 \\700\\800\end{array}\begin{array}{lll}\underline{\text { Date}}\\\text {December 31,2014}\\\text {December 31, 2015}\\ \text { December31,2016} \end{array}\end{array}$
If the allowance method of recording lower of cost or market is in use, which December 31, 2016, entry is correct?

• A) Loss Due to Market Valuation 20
• Allowance to Reduce Inventory to Market 20
• B) Inventory 730
• Income Summary 730
• C) Loss Due to Market Valuation 70
• Allowance to Reduce Inventory to Market 70
• D) Allowance to Reduce Inventory to Market 800
• Income Summary 800

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Definitions:

Human Needs

Fundamental requirements necessary for individuals to live healthy and well-being lives, including physical, social, and psychological aspects.

Satisfied Need

A psychological or physiological requirement that has been fulfilled, reducing motivation to seek further fulfillment of that same need.

Motivator

Factors or influences that induce individuals to behave in a certain manner or pursue particular goals.

Belonging Needs

Psychological requirements for human well-being emphasizing the importance of interpersonal connections and being part of a group or community.