Use the following information for questions
-Anselmo's 2014 journal entry to adjust its inventory from cost to the lower of cost and net realizable value (NRV)will include a
A)debit of $60,000 to Loss on Inventory Due to Decline in NRV.
B)credit of $60,000 to Loss on Inventory Due to Decline in NRV.
C)debit of $60,000 to Allowance to Reduce Inventory to NRV.
D)credit of $60,000 to Inventory.

Question

Use the following information for questions 
-Anselmo's 2014 journal entry to adjust its inventory from cost to the lower of cost and net realizable value (NRV)will include a
A)debit of $60,000 to Loss on Inventory Due to Decline in NRV. 
B)credit of $60,000 to Loss on Inventory Due to Decline in NRV. 
C)debit of $60,000 to Allowance to Reduce Inventory to NRV. 
D)credit of $60,000 to Inventory.

Quizplus · Accepted Answer

When adjusting inventory to the lower of cost and NRV, a loss is recognized if NRV is lower than cost. This is recorded as a debit to "Loss on Inventory Due to Decline in NRV."

Use the Following Information for Questions