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For the current year, Parker Games has the following inventory transactions related to its traditional board games. Parker Games uses a periodic inventory system. Date Jan. 1 Mar. 12 Sep. 17 Transaction Beginning inventory Purchase Purchase Units Unit Cost Total Cost $21 16 106 77 47 $2,226 1,232 423 230 $3,881 Jan. 1-Dec. 31 Sales 157 Because of the increasing popularity of electronic video games, Parker Games continues to see a decline in the demand for board games. Sales prices have decreased by over 50% during the year. At the end of the year, Parker estimates the net realizable value of the 73 units of unsold inventory to be $370. 3-a. Determine the amount of ending inventory to report using lower of cost and net realizable value. Lower of Cost and NRV FIFO

For the current year, Parker Games has the following inventory transactions related to its traditional board games. Parker Games uses a periodic inventory system. Date Jan. 1 Mar. 12 Sep. 17 Transaction Beginning inventory Purchase Purchase Units Unit Cost Total Cost $21 16 106 77 47 $2,226 1,232 423 230 $3,881 Jan. 1-Dec. 31 Sales 157 Because of the increasing popularity of electronic video games, Parker Games continues to see a decline in the demand for board games. Sales prices have decreased by over 50% during the year. At the end of the year, Parker estimates the net realizable value of the 73 units of unsold inventory to be $370. 3-a. Determine the amount of ending inventory to report using lower of cost and net realizable value. Lower of Cost and NRV FIFO

FINANCIAL ACCOUNTING
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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please do both 3a and 3b with details explanation 

For the current year, Parker Games has the following inventory transactions related to its traditional board games, Parker Games uses a periodic inventory system. Date Jan. 1 Transaction Beginning inventory Purchase Purchase Units Unit Cost $21 16 Total Cost $2,226 1,232 106 Mar. 12 77 47 Sep. 17 423 230 $3,881 Jan. 1-Dec. 31 Sales 157 Because of the increasing popularity of electronic video games, Parker Games continues to see a decline in the demand for board games. Sales prices have decreased by over 50% during the year. At the end of the year, Parker estimates the net realizable value of the 73 units of unsold inventory to be $370. 3-a. Determine the amount of ending inventory to report using lower of cost and net realizable value. Lower of Cost and NRV FIFO
Transcribed Image Text:For the current year, Parker Games has the following inventory transactions related to its traditional board games, Parker Games uses a periodic inventory system. Date Jan. 1 Transaction Beginning inventory Purchase Purchase Units Unit Cost $21 16 Total Cost $2,226 1,232 106 Mar. 12 77 47 Sep. 17 423 230 $3,881 Jan. 1-Dec. 31 Sales 157 Because of the increasing popularity of electronic video games, Parker Games continues to see a decline in the demand for board games. Sales prices have decreased by over 50% during the year. At the end of the year, Parker estimates the net realizable value of the 73 units of unsold inventory to be $370. 3-a. Determine the amount of ending inventory to report using lower of cost and net realizable value. Lower of Cost and NRV FIFO
3-b. Record any necessary adjustment under FIFO. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) View transaction list Journal entry worksheet Record the adjustment for inventory under FIFO.
Transcribed Image Text:3-b. Record any necessary adjustment under FIFO. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) View transaction list Journal entry worksheet Record the adjustment for inventory under FIFO.
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