Abel Company must write-down its inventory by $30,000 to the net realizable value of $450,000...
70.2K
Verified Solution
Link Copied!
Question
Accounting
Abel Company must write-down its inventory by $30,000 to the net realizable value of $450,000 at December 31, 2016. What is the effect of this writedown on the year 2016 financial statements?
Increase pretax income.
Decrease accounts payable.
Decrease cost of goods sold.
Decrease ending inventory on the balance sheet.
Answer & Explanation
Solved by verified expert
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
