The Nittany Lion Company has 200 units of Product K on December 31, 2020, which...
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Accounting
The Nittany Lion Company has 200 units of Product K on December 31, 2020, which originally cost $30. The replacement cost of Product K is $15. Product K sells for $25, has associated selling costs of $3, and a normal profit margin would be $5. Nittany Lion Company treats any inventory write-downs as losses. Question: Suppose Nittany Lion Company uses a perpetual FIFO inventory system. Which of the following would be reflected in a journal entry on December 31, 2020 to record the subsequent measurement of inventory?
Answer is a Debit to Loss for 1600, how do you get that?
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You can see the logs in the Dashboard.