Mariah Company has inventory at the end of the year with a historical cost of $88,000, Mariah Company uses the perpetual inventory system Under the LCM rule, the current replacement cost is $72.600 The company uses LIFO Under US GAAP the pum entry to record the write- down to LCM will: O A. debit Cost of Goods Sold for $15,400 and credit Purchases for $15,400 OB. debit Cost of Goods Sold for $15,400 and credit Inventory for $15,400. OC. debit Inventory for $15,400 and credit Cost of Goods Sold for $15,400. O D. debit Purchases for $15,400 and credit Cost of Goods Sold for $15,400.

Mariah Company has inventory at the end of the year with a historical cost of $88,000, Mariah Company uses the perpetual inventory system Under the LCM rule, the current replacement cost is $72.600 The company uses LIFO Under US GAAP the pum entry to record the write- down to LCM will: O A. debit Cost of Goods Sold for $15,400 and credit Purchases for $15,400 OB. debit Cost of Goods Sold for $15,400 and credit Inventory for $15,400. OC. debit Inventory for $15,400 and credit Cost of Goods Sold for $15,400. O D. debit Purchases for $15,400 and credit Cost of Goods Sold for $15,400.

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter6: Cost Of Goods Sold And Inventory

Section: Chapter Questions

Problem 67APSA: Inventory Costing Methods Andersons Department Store has the following data for inventory,...

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