What is the JE for recording the DIRECT method of the LCNRV method? Which accounts are affected by this?

What is the JE for recording the DIRECT method of the LCNRV method? Which accounts are affected by this?


Answer:

COGS (debited) - XX
Inventory (credited) - XX

Accounts are affected by this:

asset - decreases
liability - n/e
SE = goes down b/c COGS goes down


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