Giron Company has 2,000 units of inventory on hand with a unit cost of $200 and a net realizable value per unit of 9175. What journal entry should Giron Company record lo write down inventory under the LCM rule? O Debit cost of goods sold for $50,000 and Credit inventory for $50,000 O No write down of inventory is required in this scenario. O Debit impairment expense for $50,000 and Credit inventory for $50,000 O Debit inventory for $50,000 and Credit impairment for $50,000
Giron Company has 2,000 units of inventory on hand with a unit cost of $200 and a net realizable value per unit of 9175. What journal entry should Giron Company record lo write down inventory under the LCM rule? O Debit cost of goods sold for $50,000 and Credit inventory for $50,000 O No write down of inventory is required in this scenario. O Debit impairment expense for $50,000 and Credit inventory for $50,000 O Debit inventory for $50,000 and Credit impairment for $50,000
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter6: Cost Of Goods Sold And Inventory
Section: Chapter Questions
Problem 37BE: Lower of Cost or Market Garcia Company uses FIFO, and its inventory at the end of the year was...
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