1. When the cost-of-goods-sold method is used to record inventory at net realizable value: a. there...

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1. When the cost-of-goods-sold method is used to record inventory at net realizable value: a. there is a direct reduction in the selling price of the product that results in a loss being recorded on the income statement prior to the sale. b. a loss is recorded directly in the inventory account by crediting inventory and debiting loss on inventory decline. c. only the portion of the loss attributable to inventory sold during the period is recorded in the financial statements. d. the net realizable value figure for ending inventory is substituted for cost and the loss is buried in the cost of goods sold. 1. When the cost-of-goods-sold method is used to record inventory at net realizable value: a. there is a direct reduction in the selling price of the product that results in a loss being recorded on the income statement prior to the sale. b. a loss is recorded directly in the inventory account by crediting inventory and debiting loss on inventory decline. c. only the portion of the loss attributable to inventory sold during the period is recorded in the financial statements. d. the net realizable value figure for ending inventory is substituted for cost and the loss is buried in the cost of goods sold.

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The correct answer is c only the portion of the los... View the full answer