Sequoia Co. is evaluating its inventory, computer paper, at the end of the period. The cost of each package of paper costs Sequoia $5 and there are 5,000 units in ending inventory. They sold 27,000 packages during the period. Due to increased use of the electronic cloud, the net realizable value of each package of paper is $3.50. What is the correct amount of the inventory write-down?

Sequoia Co. is evaluating its inventory, computer paper, at the end of the period. The cost of each package of paper costs Sequoia $5 and there are 5,000 units in ending inventory. They sold 27,000 packages during the period. Due to increased use of the electronic cloud, the net realizable value of each package of paper is $3.50. What is the correct amount of the inventory write-down?

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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