QUESTION 28 At the end of the accounting period, Davis Company determined that the market value of its inventory was $79,800. The historical cost of this inventory was $81,000. Davis uses the perpetual inventory method. The entry necessary to record the lower of cost or market adjustment will: a. decrease assets and decrease net income. b. decrease assets and increase net income. c. increase assets and decrease net income. d. increase assets and increase net income. QUESTION 30 Fashion Company is preparing its financial statements. Gross margin is normally 40% of sales. Information taken from the company's records revealed sales of $80,000; beginning inventory of $25,000 and purchases of $35,000. The estimated amount of ending inventory would be: a. $24,000. b. $28,000. C. $12,000. d. $60,000