Your company has 100 units in inventory,purchased at $16 per unit,that could be replaced for $14.
A)The company should credit cost of goods sold for $200.
B)The company should debit cost of goods sold for $1,400.
C)The company should credit inventory for $200.
D)The company should debit inventory for $1,400.

Question

Quizplus · Accepted Answer

The inventory should be written down to its replacement cost, which is $14 per unit. The difference is $2 per unit for 100 units, totaling $200. This amount should be credited to inventory to reflect the lower value.

Your Company Has 100 Units in Inventory,purchased at $16 Per