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4. Loss On Inventory

in Chapter 7 (Problem 4 of 8)

Determine the effect on a company’s Assets and Net Income from the following transaction: a loss on inventory is recorded as an adjusting entry.

Assets Net Income
A Decreased Decreased
B Decreased No effect
C Increased No effect
D Increased Increased
E None of the above
Watch Solution (2:01) Hide Solution Reveal Solution

The Rest Of The Practice Problems

Click Here to View All Chapter 7 Problems at Once View
1 Consignment Inventory Easy
2 FOB Destination Easy
3 Inventory Set Aside Easy
4 Loss On Inventory
You are here. 		Easy
5 FOB Shipping Moderate
6 FOB Shipping Moderate
7 Inventory Costing Moderate
8 The Effect of Inventory Errors Hard

Chapter 7 Videos

1 COGS and Inventory 2:57
2 Net Sales 10:03
3 Perpetual vs Periodic 7:10
4 FOB Shipping? 8:51
5 Transportation In 8:41
6 COGS 6:18
7 Drawbacks to Periodic 6:07
8 Specific Identification 2:17
9 Weighted Average 4:21
10 FIFO and LIFO 20:17
11 Estimating with Gross Profit 7:23