11. Trump Incorporated reported the following data for the year 2019, 2020 and 2021 2019 2020 2021 Beginning Inventory at Cost 420,000 ? Beginning Inventory at NRV ? Ending Inventory at Cost 560,000 ? 585,000 Ending Inventory at NRV 590,000 Purchases 1,500,000 1,680,000 1,620,000 Loss on inventory write-down 18,000 ? Cost of sale before inventory write-down ? 1,700,000 ? Trump uses the allowance method in accounting for inventory write-down. At end of the year 2018, the Allowance for inventory write-down has a balance of 30,000. On 2021, the cost of sales after considering loss on inventory write-down amounts to 1,590,000. Determine the cost of sales after inventory write-down on 2019 a. 1,378,000 b. None of these c. 1,360,000 d. 1,372,000 e. 1,408,000
11. Trump Incorporated reported the following data for the year 2019, 2020 and 2021 2019 2020 2021 Beginning Inventory at Cost 420,000 ? Beginning Inventory at NRV ? Ending Inventory at Cost 560,000 ? 585,000 Ending Inventory at NRV 590,000 Purchases 1,500,000 1,680,000 1,620,000 Loss on inventory write-down 18,000 ? Cost of sale before inventory write-down ? 1,700,000 ? Trump uses the allowance method in accounting for inventory write-down. At end of the year 2018, the Allowance for inventory write-down has a balance of 30,000. On 2021, the cost of sales after considering loss on inventory write-down amounts to 1,590,000. Determine the cost of sales after inventory write-down on 2019 a. 1,378,000 b. None of these c. 1,360,000 d. 1,372,000 e. 1,408,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Transcribed Image Text:11. Trump Incorporated reported the following data for the year 2019, 2020 and 2021
2019
2020
2021
Beginning Inventory at Cost
420,000
?
Beginning Inventory at NRV
?
Ending Inventory at Cost
560,000
?
585,000
Ending Inventory at NRV
590,000
Purchases
1,500,000 1,680,000 1,620,000
Loss on inventory write-down
18,000
?
Cost of sale before inventory write-down
?
1,700,000
?
Trump uses the allowance method in accounting for inventory write-down.
At end of the year 2018, the Allowance for inventory write-down has a balance of 30,000. On
2021, the cost of sales after considering loss on inventory write-down amounts to 1,590,000.
Determine the cost of sales after inventory write-down on 2019
a. 1,378,000
b. None of these
c. 1,360,000
d. 1,372,000
e. 1,408,000
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