When the cost of goods sold method is used to record inventory at net realizable value
A. There is a direct reduction in the selling price
B. A loss is recorded directly in the inventory account by debiting loss
C. Only the portion of the loss attributable to inventory sold is recorded
D. The net realizable value for ending inventory is substituted for cost and the loss is buried in the cost of goods sold
Answer: D. The net realizable value for ending inventory is substituted for cost and the loss is buried in the cost of goods sold
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