Use the following information for questions

-Peak's 2011 entry to record to adjust its inventory from cost to the lower of cost and net realizable value (NRV) is
A)Debit: "Loss-NRV" and credit: "Allowance-NRV" $40,000
B)Debit: "Allowance-NRV" and credit: "Loss-NRV" $40,000
C)Debit: "Allowance" and credit "Recovery of loss" $10,000
D)Debit: "Recovery of loss" and credit "Allowance" $10,000

Question

Use the following information for questions 
 
-Peak's 2011 entry to record to adjust its inventory from cost to the lower of cost and net realizable value (NRV) is
A)Debit: "Loss-NRV" and credit: "Allowance-NRV" $40,000 
B)Debit: "Allowance-NRV" and credit: "Loss-NRV" $40,000 
C)Debit: "Allowance" and credit "Recovery of loss" $10,000 
D)Debit: "Recovery of loss" and credit "Allowance" $10,000

Quizplus · Accepted Answer

The Answer of Use the following information for questions 
 
-Peak's 2011 entry to record to adjust its inventory from cost to the lower of cost and net realizable value (NRV) is
A)Debit: "Loss-NRV" and credit: "Allowance-NRV" $40,000 
B)Debit: "Allowance-NRV" and credit: "Loss-NRV" $40,000 
C)Debit: "Allowance" and credit "Recovery of loss" $10,000 
D)Debit: "Recovery of loss" and credit "Allowance" $10,000

Use the Following Information for Questions