Sandork, Inc., has 200 units of inventory which are currently priced at $4.90 per unit at the market. Originally this inventory cost $5.50 per unit from an order of 400. Sandork, Inc., should take what following steps? a. Dr. Loss on inventory write-down, 120; Cr. Inventory, 120.1 b. Dr. Loss on inventory write-down, 240; Cr. Inventory, 240.1 c. Dr. Inventory, 240; Cr. Loss on inventory write-down, 240.1 d. Dr. Inventory, 120; Cr. Loss on inventory write-down, 120.1 e. Make no entry.
Sandork, Inc., has 200 units of inventory which are currently priced at $4.90 per unit at the market. Originally this inventory cost $5.50 per unit from an order of 400. Sandork, Inc., should take what following steps? a. Dr. Loss on inventory write-down, 120; Cr. Inventory, 120.1 b. Dr. Loss on inventory write-down, 240; Cr. Inventory, 240.1 c. Dr. Inventory, 240; Cr. Loss on inventory write-down, 240.1 d. Dr. Inventory, 120; Cr. Loss on inventory write-down, 120.1 e. Make no entry.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Transcribed Image Text:Sandork, Inc., has 200 units of inventory which are currently priced at
$4.90 per unit at the market. Originally this inventory cost $5.50 per unit
from an order of 400. Sandork, Inc., should take what following steps?
a. Dr. Loss on inventory write-down, 120; Cr. Inventory, 120.1
b. Dr. Loss on inventory write-down, 240; Cr. Inventory, 240.1
c. Dr. Inventory, 240; Cr. Loss on inventory write-down, 240.1
d. Dr. Inventory, 120; Cr. Loss on inventory write-down, 120.1
e. Make no entry.
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