a-company-has-inventory-valued-at-200000-the-market-value-drops-to-190000-how-sh

Question

A company has inventory valued at $$200,000. The market value drops to 190$$,000. How should the company record this change?

Accepted Answer

Debit Loss from Write-down of Inventory $$10,000; Credit Inventory 10$$,000

Answer

Debit Loss from Write-down of Inventory $$190,000; Credit Inventory 10$$,000

Answer

Debit Inventory $$10,000; Credit Loss from Write-down of Inventory 10$$,000

Answer

Debit Inventory $$190,000; Credit Loss from Write-down of Inventory 10$$,000

A company has inventory valued at \$200,000. The market value drops to \$190,000. How should the company record this change?