The journal entry to record a write-down of inventory from cost to its lower market value includes a:
A)debit to Inventory.
B)credit to Inventory.
C)credit to Sales Revenue.
D)debit to Sales Revenue.

Question

Quizplus · Accepted Answer

The entry to record the write-down includes a debit to Cost of Goods Sold (to increase that expense account)and a credit to Inventory (to decrease that asset account).

The Journal Entry to Record a Write-Down of Inventory from Cost