Uptown Department Store uses the perpetual inventory system and has ending inventory with a historical cost of $620,000. The current replacement cost of the inventory is $608,000 The net realizable value is $640 000 The company uses FO adjustments at the end of the period, the cost of goods sold account has a balance of $910,000 Which journal entry is required under US GAAP? OA. debit Inventory for $12.000 and credit Cost of Goods Sold for $12,000 OB. debit Inventory for $20,000 and credit Cost of Goods Sold for $20,000 OC. debit Cost of Goods Sold for $20,000 and credit Inventory for $20,000 Goods Sold for $12,000 and credit Inventory for $12,000 OD. debit Cost

Uptown Department Store uses the perpetual inventory system and has ending inventory with a historical cost of $620,000. The current replacement cost of the inventory is $608,000 The net realizable value is $640 000 The company uses FO adjustments at the end of the period, the cost of goods sold account has a balance of $910,000 Which journal entry is required under US GAAP? OA. debit Inventory for $12.000 and credit Cost of Goods Sold for $12,000 OB. debit Inventory for $20,000 and credit Cost of Goods Sold for $20,000 OC. debit Cost of Goods Sold for $20,000 and credit Inventory for $20,000 Goods Sold for $12,000 and credit Inventory for $12,000 OD. debit Cost

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 11RE: Jessie Stores uses the periodic system of calculating inventory. The following information is...

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