Using a periodic inventory system, Bertram Company records inventory at lower of cost or market using the direct method. The end-of-the-year journal entries to adjust inventories would include
A) ?a debit to Inventory to close beginning inventory at cost value.
B) ?a debit to Inventory to close ending inventory at market value.
C) ?a debit to Loss Due to Market Valuation for the excess of cost over market value.
D) ?a credit to Allowance to Reduce Inventory for the excess of market over cost value.
B
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What will be an ideal response?
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Indicate whether the statement is true or false