Question 13 Quinn Electronics currently owns 500 model 13 iPhones that cost $450 each. The current market price for model 13 iPhones is $350 because model 14 has been introduced. Which of the following scenarios describes the accounting treatment for Quinn Electronics' inventory of 500 model 13 iPhones? 0.35 Points A No accounting entry is required because historical cost requires the company to record iPhones at their acquisition cost. B The company should reduce its selling price, but should not consider reducing the dollar amount of inventory for model 13 iPhones. CThe company should reduce inventory by $50,000, but will not adjust any other financial statement account The company should reduce inventory by $50,000 by recording a corresponding expense on its income statement.

Quinn Electronics currently owns 500 model 13 iPhones that cost $450 each. The current market price for model 13 iPhones is $350 because model 14 has been introduced. Which of the foliowing scenarios describes the accounting treatment for Quin Electronics' inventory of 500 model 13 iphones? No accounting entry is required because historical cost requires the company to record iphones at their acquisition cost. The company should reduce its selling price, but should not consider reducing the dollar amount of inventory for model 13 iphones. The company should reduce inventory by $0,000, but will not adjust any other financial statement account The company should reduce inventory by $50,000 by recording a corresponding expense on its income statement