The Bristol Company Was Recently Required to Record an Inventory

question 141

Multiple Choice

The Bristol Company was recently required to record an inventory write-down of $5,215 because the market value of its inventory was less than cost. Assuming the amount of the write-down is not material (the total inventory was over $9,750,000) , which of the following is the appropriate journal entry?

• A)Option A
• B)Option B
• C)Option C
• D)Option D

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Definitions:

Express

Clearly and unmistakably communicated, directly stated, or specified.

Settlor

An individual or entity that creates a trust by legally transferring assets to a trustee for the benefit of beneficiaries.

Trust Created

The establishment of a fiduciary relationship where a trustee holds and manages assets on behalf of a beneficiary.

Constructive Trust

(1) An implied trust in which a party is named to hold the trust for its rightful owner. (2) An equitable trust imposed on someone who wrongfully obtains or holds legal right to property he or she should not possess.