Mariah Company has inventory at the end of the year with a historical cost of . Mariah Company uses the perpetual inventory system. Under the LCM rule, the current replacement cost is . The company uses LIFO. Under U. S. GAAP, the journal entry to record the writedown to LCM will:

The numbers are missing, but the journal entries should follow the following format. Under GAAP, when you are writing down inventory, you must increase cost of goods sold and decrease inventory account:

Dr Cost of goods sold XX

    Cr Inventory XX

Any changes in inventory levels are written off against cost of goods sold, since it increases a company's expenses while it decreases its assets.

answer; no individual buyer or seller has any significant impact on the market price;

since the options are not listed, when you are working on your budget you should also add water, tv, internet, miscellaneous and your 'fun' money for in your budget. when budgeting, you need to allow for fun money, and mis/accidental money so that you stick to the budget and not go crazy because you feel strapped to the budget.