Investments with a cost of $12,000 have a current market value of $11,612. The adjusting entry willrequire a:
A) credit to Unrealized Loss on Investment for $388
B) credit to Investments for $388
C) debit to Investments for $388
D) no entry required

Question

Quizplus · Accepted Answer

The investment has decreased in value by $388 ($12,000 - $11,612), so the investment account should be credited to reflect the decrease in value.

Investments with a Cost of $12,000 Have a Current Market