When the market is lower than cost, and the indirect method of recording the write-down is used, what account is credited?

a) a loss account
b) merchandise inventory
c) allowance to reduce inventory to market
d) cost of goods sold

Ans: c) allowance to reduce inventory to market

Business

You might also like to view...

Online surveys are generally believed to achieve response quality equal to that of:

a) telephone surveys. b) drop-off surveys. c) mall-intercept surveys. d) in-office surveys.

Business

Examples of other government publications published by the federal government include all of the following except ________

A) Periodical Abstract B) Business Conditions Digest C) Statistical Abstract of the United States D) Survey of Current Business

Business