Use the Following Information for Questions

Multiple Choice

Use the following information for questions

-Peak's 2011 entry to record to adjust its inventory from cost to the lower of cost and net realizable value (NRV) is

A) Debit: "Loss-NRV" and credit: "Allowance-NRV" $40,000
B) Debit: "Allowance-NRV" and credit: "Loss-NRV" $40,000
C) Debit: "Allowance" and credit "Recovery of loss" $10,000
D) Debit: "Recovery of loss" and credit "Allowance" $10,000