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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
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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:

User Majorhavoc
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1 Answer

19 votes
19 votes

Answer:

A Credit to inventory for $700

Step-by-step 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

User Zwiebel
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