5. Which of the following statements does not accurately describe the lower of cost or market (LCM) valuation method? A. The journal entry to write-down inventory decreases gross profit. B. The journal entry to write-down inventory decreases current assets. The journal entry to write-down inventory does not affectincome from operations. D. The journal entry to write-down inventory increases cost of goods sold. 6. Which of the following is correct when beginning inventory is understated by S1300 and ending inventory is understated by $700? A. Net income is understated by $600. B. Net income is understated by $2,000. C. Net income is overstated by $600. D. Net income is overstated by $2,000. 7. Carp Corporation has provided the following information for its most recent month of operation: sales $16.000; ending inventory $4.000, purchases s8.000 and gross profit s10000. How much was Carp's beginning inventory? A. $2,000 B. $18,000 C. $6,000 D. $12,000 8. Moore Company purchased an item for inventory that cost $20 per unit and was priced to sell at $30. It was determined that the replacement cost is $18 per unit. Using the lower-of-cost-or- market rule, what amount should be reported on the balance sheet for inventory? A. $18 B. $20 C. $12 D. $30 9. Tinker's 2011 cost of goods sold was s750,000 and 2010 cost of goods sold was $770,000. The inventory at the end of 2011 was $188,000 and $208,000 at the end of 2010. What was Tinker's inventory turnover during 2011? A. 3.79 B. 3.99