Sidney Co

 Sidney Co. began operations in January, 2020 and determined its ending Inventory at cost and at LCNRV at December 31, 2020 and December 31.2021 as follows: Cost Net Realizable Value December 31, 2020 $297,500 $293,000 December 31, 2021 215,000 209,000 Sidney Co. elects to use the loss method to record any necessary adjustments for inventory declines. Which of the following correctly captures the adjustments at the end of each year to record the inventory at LCNRV: O 12/31/2020. Debit Allowance to reduce Inventory to NRV for $4.500 O None of these are correct 12/31/2021: Debit loss to due to decline of inventory to NRV for $6,000 12/31/2020: Debit Cost of Goods sold for $4,500 O 12/31/2021: Credit Allowance to reduce Inventory to NRV for $1.500 0 Question 20 3 pts What is the financial statement impact of writing-off an account as uncollectible under the allowance method? O None of these are correct. Both an increase to expenses and a decrease to assets Decrease to assets O Neither an increase to expenses nor a decrease to assets o Increase to expenses

 Sidney Co. began operations in January, 2020 and determined its ending Inventory at cost and at LCNRV at December 31, 2020 and December 31.2021 as follows: Cost Net Realizable Value December 31, 2020 $297,500 $293,000 December 31, 2021 215,000 209,000 Sidney Co. elects to use the loss method to record any necessary adjustments for inventory declines. Which of the following correctly captures the adjustments at the end of each year to record the inventory at LCNRV: O 12/31/2020. Debit Allowance to reduce Inventory to NRV for $4.500 O None of these are correct 12/31/2021: Debit loss to due to decline of inventory to NRV for $6,000 12/31/2020: Debit Cost of Goods sold for $4,500 O 12/31/2021: Credit Allowance to reduce Inventory to NRV for $1.500 0 Question 20 3 pts What is the financial statement impact of writing-off an account as uncollectible under the allowance method? O None of these are correct. Both an increase to expenses and a decrease to assets Decrease to assets O Neither an increase to expenses nor a decrease to assets o Increase to expenses