A firm using the lower-of-cost-or-market method discovers that their inventory is worth $200.00 less than it originally cost. What journal entry should be made and how would it be stated on the income statement?
a. Merchandise Inventory is debited $200.00 and Loss on Write-Down of Inventory is credited $200.00 and the write-down is reported as revenue on the income statement.
b. Loss on Write-Down of Inventory is debited $200.00 and Merchandise Inventory is credited $200.00 and the write-down is reported as an expense on the income statement.
c. Sales is debited $200.00 and Cost of Goods Sold is credited $200.00 and the expense is reported on the income statement.
d. Accounts Payable is debited $200.00 and Accounts Receivable is credited $200.00 and there is no effect on the income statement.
e. Cost of Goods Sold is debited $200.00 and Cash is credited $200.00 with no effect on the income statement.
b
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The payment of wages to employees is an internal event
a. True b. False Indicate whether the statement is true or false
The management of Keiko has learned that the company risks losing a long-time customer, LZT, to a competitor. How can Keiko make it more difficult for LZT to switch to another customer?
What will be an ideal response?
On November 1, Alan Company signed a 120-day, 12% note payable, with a face value of $9900. What is the adjusting entry for the accrued interest at December 31 on the note? (Use 360 days a year.)
A. Debit Interest Payable, $396; credit Interest Expense, $396. B. Debit Interest Expense, $264; credit Interest Payable, $264. C. Debit Interest Expense, $198; credit Interest Payable, $198. D. Debit Interest Payable, $132; credit Interest Expense, $132. E. No adjusting entry is required.
When the Civil Rights Act was amended in 1991, one major change included:
A. removing compensatory and punitive damages B. adding compensatory and punitive damages C. lowering thresholds D. changing legally defensible arguments E. None of the above