When following U.S. GAAP, firms can use two methods to write down inventory to market, if needed.
Required:
1. What are the two methods called?
2. If there is a loss, describe the journal entry for both methods.
3. If there is a significant loss, which method is preferred? Why is this the case?

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The Answer of When following U.S. GAAP, firms can use two methods to write down inventory to market, if needed.
Required:
1. What are the two methods called?
2. If there is a loss, describe the journal entry for both methods.
3. If there is a significant loss, which method is preferred? Why is this the case?

When Following U