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On 31/12/2020, ABC Company had inventories costing $10000. The estimated selling price was $12000, the estimated cost of completion was $2000, and the estimated cost to make the sale was $1000. Prepare the accounting entry on 31/12/2021, assuming that NRV (on 31/12/2021) was $12000 and the amount is immaterial O a. All answers are false O b. O C. O d. Oe. Loss on reversal of Inventory write-down Inventory Cost of goods sold Inventory Inventory Cost of goods sold Inventory Gain on reversal of Inventory write-down 9500 500 500 9500 9500 500 500 9500

On 31/12/2020, ABC Company had inventories costing $10000. The estimated selling price was $12000, the estimated cost of completion was $2000, and the estimated cost to make the sale was $1000. Prepare the accounting entry on 31/12/2021, assuming that NRV (on 31/12/2021) was $12000 and the amount is immaterial O a. All answers are false O b. O C. O d. Oe. Loss on reversal of Inventory write-down Inventory Cost of goods sold Inventory Inventory Cost of goods sold Inventory Gain on reversal of Inventory write-down 9500 500 500 9500 9500 500 500 9500

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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On 31/12/2020, ABC Company had inventories costing $10000. The estimated selling price was $12000, the estimated cost of completion was $2000, and the estimated cost to make the sale was $1000. Prepare the accounting entry on 31/12/2021, assuming that NRV (on 31/12/2021) was $12000 and the amount is immaterial Oa. All answers are false O b. O C. O d. e. Loss on reversal of Inventory write-down Inventory Cost of goods sold Inventory Inventory Cost of goods sold Inventory Gain on reversal of Inventory write-down 9500 500 500 9500 9500 500 500 9500
Transcribed Image Text:On 31/12/2020, ABC Company had inventories costing $10000. The estimated selling price was $12000, the estimated cost of completion was $2000, and the estimated cost to make the sale was $1000. Prepare the accounting entry on 31/12/2021, assuming that NRV (on 31/12/2021) was $12000 and the amount is immaterial Oa. All answers are false O b. O C. O d. e. Loss on reversal of Inventory write-down Inventory Cost of goods sold Inventory Inventory Cost of goods sold Inventory Gain on reversal of Inventory write-down 9500 500 500 9500 9500 500 500 9500
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