Assume a company paid $800 for a computer that it plans to sell to its customers. Suppose that as a result of new technology the company could buy the same computer today for $600. Which of the following journal entries would be required to show the inventory at the lower of cost or market?

a)

Account Titles	Debit	Credit
Inventory	600
Cost of Goods Sold		600

b)

Account Titles	Debit	Credit
Cost of Goods Sold	600
Inventory		600

c)

Account Titles	Debit	Credit
Inventory	200
Cost of Goods Sold		200

d)

Account Titles	Debit	Credit
Cost of Goods Sold	200
Inventory		200

Answer rating: 100% (QA)

Option d Account Titles Debit Cr... View the full answer