Question

At the end of a reporting period, Gaston Corporation determines that its ending inventory has a cost of $6,500 and a market value of $5,800. The adjustment to write down inventory to market value would include:

Answer 1

Answer:

A Credit to inventory for $700

Explanation:

Based on the information given The adjustment to write down inventory to market value would include: CREDIT TO INVENTORY FOR $700 calculated as :

Inventory=Ending inventory - Market value

Inventory=($6500-$5800)

Inventory=$700