When a company uses the perpetual inventory method,which of the following would be the entry to adjust inventory to lower-of-cost-or-market?

Question

Quizplus · Accepted Answer

When using the perpetual inventory system, the inventory account is continuously updated every time a purchase or sale is made. To adjust inventory to lower-of-cost-or-market, we need to debit the cost of goods sold account and credit the merchandise inventory account, lowering the value of the inventory to the market value. Therefore, the correct option is C: debit Cost of Goods Sold and credit Merchandise Inventory.

When a Company Uses the Perpetual Inventory Method,which of the Following