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Under the principle of lower of cost and net realizable value, when a company has 10 units of inventory A with net realizable value of
Under the principle of lower of cost and net realizable value, when a company has 10 units of inventory A with net realizable value of $50 and a cost of $60, what is the adjustment?
A. Debit Cost of Goods Sold $100; credit Inventory $100.
B. Debit Cost of Goods Sold $500; credit Inventory $500.
C. Debit Inventory $100; credit Cost of Goods Sold $100.
D. Debit Inventory $500; credit Cost of Goods Sold $500.
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