Klassen Furniture Inc. paid $3,000 for inventory on September 26. By December 31, Klassen determined that the net realizable value of this inventory is only $2,000. The following journal only was used to write down the inventory: Dr. Cost of goods sold Cr. Inventory 1,000 1,000 Assume that Klassen's inventory described above was still on hand at the end of the next period and that the net realizable value had increased to $3,200. The journal entry to reverse the write-down is debit cost of goods sold and credit inventory, both by $200 debit inventory and credit cost of goods sold, both by $1,200 debit inventory and credit cost of goods sold, both by $200 debit inventory and credit cost of goods sold, both by $1,000

Klassen Furniture Inc. paid $3,000 for inventory on September 26. By December 31 , Klassen determined that the net realizable value of this inventory is only $2,000. The following journal only was used to write down the inventory: Dr. Cost of goods sold 1,000 Cr. Inventory 1,000 Assume that Klassen's inventory described above was still on hand at the end of the next period and that the net realizable value had increased to $3,200. The journal entry to reverse the write-down is debit cost of goods sold and credit inventory, both by $200 debit inventory and credit cost of goods sold, both by $1,200 debit inventory and credit cost of goods sold, both by $200 debit inventory and credit cost of goods sold, both by $1,000