Question
When the cost-of-goods-sold method is used to record a loss on inventory valued at net realizable value a. ending inventory is valued at replacement cost
When the cost-of-goods-sold method is used to record a loss on inventory valued at net realizable value
a. ending inventory is valued at replacement cost and a loss is recorded by debiting Loss on Inventory Decline.
b. ending inventory is valued at net realizable value and a loss is recorded directly in the inventory account by crediting Inventory and debiting Loss on Inventory Decline.
c. ending inventory is valued at replacement cost and the loss is recorded by debiting Cost of Goods Sold.
d. ending inventory is valued at net realizable value and the loss is recorded by debiting Cost of Goods Sold.
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