Your company has 100 units in inventory,purchased at $16 per unit.These units have a current market value of $14.The entry to write-down the inventory will include a:
A) credit to Cost of Goods Sold for $200.
B) debit to Cost of Goods Sold for $1,400.
C) credit to Inventory for $200.
D) debit to Inventory for $1,400.

Question

Quizplus · Accepted Answer

The write-down of inventory is recorded by crediting Inventory for the difference between the cost and market value, which is 100 units x ($16 - $14) = $200.

Your Company Has 100 Units in Inventory,purchased at $16 Per