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When the lower of cost or market (LCM) rule requires an inventory adjustment: O c. the inventory adjustment is recorded in a contra-account called merchandise
When the lower of cost or market (LCM) rule requires an inventory adjustment: O c. the inventory adjustment is recorded in a contra-account called merchandise allowances. O b. the write-down is usually reported as a part of cost of goods sold a. the adjustment usually, but not always, reduces the book value of inventory O d. the write-down does not affect any of the financial statements
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