A company has the following information for its inventories…

A company has the following information for its inventories A, B, C, and D: Quantity Historical Cost Net Realizable Value A 15 $20 $25 B 20 35 30 C 40 25 40 D 25 50 35 The necessary adjustment associated with the lower of cost and net realizable value would be: Event Account Title Debit Credit 1. Inventory 675 Cost of Goods Sold 675 2. Cost of Goods Sold 675 Inventory 675 3. Inventory 475 Cost of Goods Sold 475 4. Cost of Goods Sold 475 Inventory 475

Binz Company provides cleaning services and sells garbage bi…

Binz Company provides cleaning services and sells garbage bins to office clients. On June 1, Binz delivered 100 garbage bins to a client, and also entered into a 5-year contract for Binz to provide cleaning services to that client. Which of the following statements about the recognition of revenue relating to these services is correct?