28 The normal balances for prepaid rent and rent expense would both be a debit. True False QUESTION 29 Glacier's Glass Company buys a new truck for the business using cash. The effect on the accounting equation is to: decrease assets. increase assets and decrease liabilities. shift liabilities to stockholders' equity. Ono effect QUESTION 30 Archer Corp. has the following LIFO perpetual inventory records Date December 1 December 7 December 18 December 31 Purchases $1,500 $1,400 Cost of Goods Sold Inventory on Hand $4,150 $5.650 $1.200 $4.450 $5,850 The current replacement cost of the ending inventory is $3.800 To apply the lower-of-cost-or-market rule, the journal entry would be: Debit Inventory $2,050, credit Cost of Goods Sold $2,050 Debit inventory $1,200, credit Cost of Goods Sold $1.200 Debit Cost of Goods Sold $2,050, credit Inventory $2.050, Debit Cost of Goods Sold $1 200 credit Inventon $1.200 Click Soir and Submit to save and submit. Click Save All Answers to save all answers Sa