A local Chevrolet dealership carries the following types of vehicles: Inventory ItemsQuantityUnit CostUnit NRVVans3$18,000$16,000Trucks616,20015,2002-door sedans211,20013,2004-door sedans715,20018,200Sports cars328,00031,000SUVs526,40019,000 Because of recent increases in gasoline prices, the car dealership has noticed a reduced demand for its SUVs, vans, and trucks.Required:4. Determine the financial statement effects of using lower of cost and net realizable value to report inventory. (Make sure to enter amounts leading to account reduction with a minus sign.)Please help me with Requirement 4! Requirements 1 through 3 have all been answered correctly -- I attached a screenshot of those values in case they might be needed for Requirement 4. For Requirement 4, the text presets to choose from are as follow: Required 1InventoryItemsComplete this question by entering your answers in the tabs below.Required 1 Required 2Total costComplete this question by entering your answers in the tabs below.TotalCompute the total cost of the entire inventory.VansTrucks2-door sedans4-door sedansSports carsSUVSRequired 2Cost orNRVDetermine whether each inventory item would be reported at cost or net realizable value (NRV). Enter the amount of eitherthe Unit Cost or Unit NRV in the "Lower of Cost and NRV per unit" column and then multiply this amount by the quantity ofeach inventory item and enter it in the Total column.NRVNRVCostCostCostNRV✓✓✓$ 496,000✓✓✓Required 3 Required 4Lower ofCost andNRV perunit16,000 $15,200 ✓11,200✔15,200✔28,000✔19,000✔Total48,000✔91,200✔22,400✔106,400✔84,00095.000447,000Required 3< Required 1Required 4Required 3 >< Required 1Required 1 Required 2Complete this question by entering your answers in the tabs below.NoRequired 2 >1Transaction1Required 3Record any necessary adjusting entry to write down inventory from cost to net realizable value. (If no entry is required for atransaction/event, select "No Journal Entry Required" in the first account field.)Answer is not complete.Cost of Goods SoldInventoryRequired 4General Journal✓✓Debit49,000✔CreditPICCOLLAGE Complete this question by entering your answers in the tabs below.Required 1 Required 2 Required 3RevenuesDetermine the financial statement effects of using lower of cost and net realizable value to report inventory. (Make sure to enter amounts leading to account reductionwith a minus sign.)AssetsAnswer is not complete.Required 4InventoryIncome Statement:Balance Sheet:< Required 3ExpensesCost of Goods SoldLiabilitiesRequired 4 >+Net IncomeStockholders'Equity

Financial statements are a collection of summary level reports about an organizations financial…

Answered: A local Chevrolet dealership carries…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

A local Chevrolet dealership carries the following types of vehicles:

Inventory Items	Quantity	Unit Cost	Unit NRV
Vans	3	$18,000	$16,000
Trucks	6	16,200	15,200
2-door sedans	2	11,200	13,200
4-door sedans	7	15,200	18,200
Sports cars	3	28,000	31,000
SUVs	5	26,400	19,000

Because of recent increases in gasoline prices, the car dealership has noticed a reduced demand for its SUVs, vans, and trucks.

Required:

4. Determine the financial statement effects of using lower of cost and net realizable value to report inventory. (Make sure to enter amounts leading to account reduction with a minus sign.)

Please help me with Requirement 4! Requirements 1 through 3 have all been answered correctly -- I attached a screenshot of those values in case they might be needed for Requirement 4. For Requirement 4, the text presets to choose from are as follow:

Required 1
Inventory
Items
Complete this question by entering your answers in the tabs below.
Required 1 Required 2
Total cost
Complete this question by entering your answers in the tabs below.
Total
Compute the total cost of the entire inventory.
Vans
Trucks
2-door sedans
4-door sedans
Sports cars
SUVS
Required 2
Cost or
NRV
Determine whether each inventory item would be reported at cost or net realizable value (NRV). Enter the amount of either
the Unit Cost or Unit NRV in the "Lower of Cost and NRV per unit" column and then multiply this amount by the quantity of
each inventory item and enter it in the Total column.
NRV
NRV
Cost
Cost
Cost
NRV
✓
✓
✓
$ 496,000
✓
✓
✓
Required 3 Required 4
Lower of
Cost and
NRV per
unit
16,000 $
15,200 ✓
11,200✔
15,200✔
28,000✔
19,000✔
Total
48,000✔
91,200✔
22,400✔
106,400✔
84,000
95.000
447,000
Required 3
< Required 1
Required 4
Required 3 >
< Required 1
Required 1 Required 2
Complete this question by entering your answers in the tabs below.
No
Required 2 >
1
Transaction
1
Required 3
Record any necessary adjusting entry to write down inventory from cost to net realizable value. (If no entry is required for a
transaction/event, select "No Journal Entry Required" in the first account field.)
Answer is not complete.
Cost of Goods Sold
Inventory
Required 4
General Journal
✓
✓
Debit
49,000✔
Credit
PICCOLLAGE

Complete this question by entering your answers in the tabs below.
Required 1 Required 2 Required 3
Revenues
Determine the financial statement effects of using lower of cost and net realizable value to report inventory. (Make sure to enter amounts leading to account reduction
with a minus sign.)
Assets
Answer is not complete.
Required 4
Inventory
Income Statement:
Balance Sheet:
< Required 3
Expenses
Cost of Goods Sold
Liabilities
Required 4 >
+
Net Income
Stockholders'
Equity

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