Given the following information for the Raquel Company:

Date	Cost	Market
December 31, 2018	$500	$500
December 31, 2019	700	700
December 31, 2020	800	730

Under the perpetual system, if the direct method of recording lower of cost or NRV is in use, which December 31, 2020 entry is correct?

a.

Cost of Goods Sold		70
	Inventory			70

b.

Loss Due to Write-Down of Inventory		70
	Allowance to Reduce Inventory to NRV			70

c.

Cost of Goods Sold		70
	Allowance to Reduce Inventory to NRV			70

d.

Inventory		70
	Cost of Goods Sold			70

Answer rating: 100% (QA)

Under the perpetual system if the direct method of recording lower of cost or NRV is in use then co... View the full answer