A company has the following information for its inventories…
A company has the following information for its inventories A, B, C, and D: Quantity Cost Net Realizable Value A 15 $20 $25 B 20 35 30 C 40 25 40 D 25 50 35 The necessary adjusting entry associated with the lower of cost and net realizable value would be: Event Account Title Debit Credit 1. Inventory 675 1. Cost of Goods Sold 675 2. Cost of Goods Sold 675 2. Inventory 675 3. Inventory 475 3. Cost of Goods Sold 475 4. Cost of Goods Sold 475 4. Inventory 475