A company reports inventory using the lower of cost and net realizable value. Below is information related its year-end inventory: Cost $23 28 NRV Inventory Item A Item B Quantity 150 70 $28 18 a. Calculate ending inventory under the lower of cost and net realizable value. Ending inventory b. Prepare the necessary adjusting entry to inventory. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.)
A company reports inventory using the lower of cost and net realizable value. Below is information related its year-end inventory: Cost $23 28 NRV Inventory Item A Item B Quantity 150 70 $28 18 a. Calculate ending inventory under the lower of cost and net realizable value. Ending inventory b. Prepare the necessary adjusting entry to inventory. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question

Transcribed Image Text:A company reports inventory using the lower of cost and net realizable value. Below is information related to its year-end inventory:
Inventory
Item A
Item B
Quantity
150
70
Cost
$23
28
NRV
$28
18
a. Calculate ending inventory under the lower of cost and net realizable value.
Ending inventory
b. Prepare the necessary adjusting entry to inventory. (If no entry is required for a particular transaction/event, select "No Journal
Entry Required" in the first account field.)
View transaction list
Journal entry worksheet
>
1
Record the adjusting entry for inventory.
Note: Enter debits before credits.
Debit
Credit
Transaction
General Journal
1
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