Under the perpetual inventory system,the accounting entry to record a write-down of $600 of various inventory items from cost to net realisable value is:

Question

Quizplus · Accepted Answer

The correct entry to record a write-down of inventory under the perpetual inventory system is to debit Cost of Goods Sold and credit Inventory. This reflects the decrease in the value of inventory and recognizes the loss in the period it occurs.

Under the Perpetual Inventory System,the Accounting Entry to Record a Write-Down