Beginning Inventory at Lower of Cost or Net Realizable Value = $336,000 Purchases at Cost = $147,700 Ending Inventory at Cost = $300,000 Ending Inventory at Net Realizable Value = $297,,450 Net Sales = $620,000

question 2: Record the journal entry using the Loss Method assuming the use of the periodic system. The debit goes to what ACCOUNT?

question 4: Record the journal entry using the Loss Method assuming the use of the periodic system. The CREDIT goes to what ACCOUNT?

question 7: Applying Lower of Cost or Net Realizable Value using the Cost of Goods Sold Method is:

A. Always misleading to the financial statement reader.

B. Can be misleading to the financial statement reader if the decline in value is not a normal recurring write but is rather material and/or unusual in nature.

C. Buries the loss in the operating section of the income statement.

D. Clearly discloses the loss as a line item on the income statement for the reader of the financial statements to see.

E. Both B and C

question 10: The gross profit percentage is computed by dividing the gross profit in dollars by net what?