If the market value of goods in inventory is $26,000 below its cost,the company should:
A)do nothing,because assets are reported at their original purchase price.
B)credit Inventory for $26,000.
C)debit Inventory for $26,000.
D)use the weighted average cost method since that method provides a more accurate indicator of current value.

Question

Quizplus · Accepted Answer

The entry to record the write-down includes a debit to Cost of Goods Sold and a credit to Inventory for $26,000.

If the Market Value of Goods in Inventory Is $26,000