The Bradford Company was recently required to record an inventory write-down of $5,200 because the market value of its inventory was less than cost. Assuming the amount of the write-down is immaterial, which of the following journal entries would be recorded?
A.
| Inventory | 5,200 | |
| Sales | 5,200 |
B.
| Sales | 5,200 | |
| Inventory | 5,200 |
C.
| Cost of goods sold | 5,200 | |
| Inventory | 5,200 |
D.
| Cost of goods sold | 5,200 | |
| Sales | 5,200 |
Answer: C
You might also like to view...
From an ABC perspective, what causes costs to be incurred?
A. Activities. B. Financial transactions. C. Management decisions. D. Debits and credits. E. The volume of units produced.
The degree to which selection procedures yield consistent data when repeated is known as
A. consistency. B. reliability. C. validity. D. conformity.
The Worker Adjustment and Retraining Notification Act (WARN) requires employers to find new jobs for all those employees it fires due to plant closings
a. True b. False Indicate whether the statement is true or false
Wells Water Systems recently reported $8,250 of sales, $4,500 of operating costs other than depreciation, and $950 of depreciation. The company had no amortization charges, it had $3,250 of outstanding bonds that carry a 6.75% interest rate, and its federal-plus-state income tax rate was 25%. In order to sustain its operations and thus generate sales and cash flows in the future, the firm was required to spend $750 to buy new fixed assets and to invest $250 in net operating working capital. How much free cash flow did Wells generate?
A. $2,050.00 B. $2,152.50 C. $2,260.13 D. $2,373.13 E. $2,491.79