Uptown Department Store uses the perpetual inventory system and has ending inventory with a historical cost of $620,000. The current replacement cost of the inventory is $598,000. The net realizable value is $670,000
Before any adjustments at the end of the period, the cost of goods sold account has a balance of $920,000. Which journal entry is required under U.S. GAAP?
A) debit Cost of Goods Sold for $50,000 and credit Inventory for $50,000
B) debit Inventory for $50,000 and credit Cost of Goods Sold for $50,000
C) debit Cost of Goods Sold for $22,000 and credit Inventory for $22,000
D) debit Inventory for $22,000 and credit Cost of Goods Sold for $22,000
C
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Your cash manager is currently using wire transfer to obtain collections from distant locations each time that the cash accumulates to $50,000. Evaluate the financial logic of this policy if the wire transfer costs $20, saves three days of mail time, and interest rates average 7 percent annually.
A) Stop the policy; $8.77 is lost with each transfer. B) Continue the policy at the current transfer amount. C) Improve policy by reducing transfer amount to $34,800. D) Stop the policy unless the transfer amount is increased to approximately $65,200.
In instances where the resources are too limited to allow a high-quality project, the firm should be advised not to undertake formal marketing research
Indicate whether the statement is true or false