Mariah Company has inventory at the end of the year with a historical cost of $88,000, Mariah Company uses the perpetual inventory system Under the LCM rule, the current replacement cost is $72.600 The company uses LIFO Under US GAAP the pum entry to record the write- down to LCM will: O A. debit Cost of Goods Sold for $15,400 and credit Purchases for $15,400 OB. debit Cost of Goods Sold for $15,400 and credit Inventory for $15,400. OC. debit Inventory for $15,400 and credit Cost of Goods Sold for $15,400. O D. debit Purchases for $15,400 and credit Cost of Goods Sold for $15,400.
Mariah Company has inventory at the end of the year with a historical cost of $88,000, Mariah Company uses the perpetual inventory system Under the LCM rule, the current replacement cost is $72.600 The company uses LIFO Under US GAAP the pum entry to record the write- down to LCM will: O A. debit Cost of Goods Sold for $15,400 and credit Purchases for $15,400 OB. debit Cost of Goods Sold for $15,400 and credit Inventory for $15,400. OC. debit Inventory for $15,400 and credit Cost of Goods Sold for $15,400. O D. debit Purchases for $15,400 and credit Cost of Goods Sold for $15,400.
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter7: Inventories: Cost Measurement And Flow Assumptions
Section: Chapter Questions
Problem 3RE: Reid Company uses the periodic inventory system. On January 1, it had an inventory balance of...
Related questions
Question
25 PLEASE SOLVE!!
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning
Financial Accounting: The Impact on Decision Make…
Accounting
ISBN:
9781305654174
Author:
Gary A. Porter, Curtis L. Norton
Publisher:
Cengage Learning
Survey of Accounting (Accounting I)
Accounting
ISBN:
9781305961883
Author:
Carl Warren
Publisher:
Cengage Learning
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning
Financial Accounting: The Impact on Decision Make…
Accounting
ISBN:
9781305654174
Author:
Gary A. Porter, Curtis L. Norton
Publisher:
Cengage Learning
Survey of Accounting (Accounting I)
Accounting
ISBN:
9781305961883
Author:
Carl Warren
Publisher:
Cengage Learning
College Accounting, Chapters 1-27
Accounting
ISBN:
9781337794756
Author:
HEINTZ, James A.
Publisher:
Cengage Learning,
Individual Income Taxes
Accounting
ISBN:
9780357109731
Author:
Hoffman
Publisher:
CENGAGE LEARNING - CONSIGNMENT
Cornerstones of Financial Accounting
Accounting
ISBN:
9781337690881
Author:
Jay Rich, Jeff Jones
Publisher:
Cengage Learning