Under principle of lower of cost and net realizable value

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Reference no: EM131293226

Under the principle of lower of cost and net realizable value, when a company has 10 units of inventory A with net realizable value of $50 and a cost of $60, what is the adjustment?

A. Debit Cost of Goods Sold $100; credit Inventory $100.

B. Debit Cost of Goods Sold $500; credit Inventory $500.

C. Debit Inventory $100; credit Cost of Goods Sold $100.

D. Debit Inventory $500; credit Cost of Goods Sold $500.

Reference no: EM131293226

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