Question: When inventory cost is adjusted down, the balance sheet is impacted in which way? The value of the asset, Merchandise inventory, is increased to reflect

When inventory cost is adjusted down, the balance sheet is impacted in which way?
The value of the asset, Merchandise inventory, is increased to reflect a more optimistic outlook.
The balance sheet is unchanged as the impact occurs only on the income statement.
The value of the asset, Merchandise Inventory, is restated at a more conservative number.
The value of the liability, Operating Expenses, would be increased to reflect the loss.
When inventory cost is adjusted down, the balance

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