accounting mpc

Using a perpetual inventory system, the purchase of inventory on account is recorded with a

Debit to inventory

In a perpetual inventory system, if merchandise is returned to a supplier

Inventory is credited.

For companies that use FIFO, average cost, or any method other than LIFO or retail inventory method, inventory is valued at

The lower of cost or net realizable value.

When reporting inventory using the lower of cost or market method, market should not be less than

Net realizable value less a normal profit margin

When reporting inventory using the lower of cost or market method, market should not be more than

NRV

The difference in the calculation of the cost-to-retail percentage applying the LIFO method and the average cost method is that the average cost method:

Includes beginning inventory