t is the journal entry to record a difference between a total inventory cost of $25,000 that, under LCM costing, is valued at $15,0002 a. Cost of Goods Sold b. Inventory c. Loss in Inventory Write-Down to Market d. Inventory Inventory Cost of Goods Sold Inventory Loss in Inventory Write-Down to Market 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 7. 50 50 50 50 8. Your company signs a purchase commitment of $15,000. At year end, this What is the journal entry to record a difference between a total inventory a. Cost of Goods Sold b. Inventory c. Loss in Inventory Write-Down to Market d. Inventory cost of $25,000 that, under LCM costing, is valued at $24,950? 50 50 50 50 Inventory Cost of Goods Sold Cost of Goods Sold Loss in Inventory Write Down to Market inventory has a market value of $10,000. What journal entry do you record at year end? a. Cost of Goods Sold b. Inventory c. Loss in Inventory Write Down to Market d. None of the above Inventory Cost of Goods Sold Inventory 5,000 5,000 5,000 5,000 5,000 5,000 UpCo signs a purchase commitment for $15,000. At year end, market value is $10,000, so UpCo records the appropriate journal entries. If, when the goods are delivered the following year the market value has recovered to $12,000, what journal entry should UpCo record? a. Estimated Liability on Purchase Commitment 5,000 9. Inventory Recovery of Loss on Purchase Commitment Cash 15,000 15,000 b. Inventory 3,000 12,000 Recovery of Loss on Purchase Commitment Cash Estimated Liability on Purchase Commitment Inventory Cash None of the above 3,000 c. 15,000 d