1 . You are auditing , a public , U . S . based company that files financial statements with the SEC The entire company reports using GAAP . After selecting finished goods inventory for LCM esting , you obtain the latest sales invoice for each and note the following ; Quantity on Latest Latest Material Name hand JOM Unit Cost Total Cost Invoice # invoice price Basketball Prob 50500 LINES 30 00 1515.090 2348 Apollo Basketball Shoe 65 000 units 20.00 1300 090 1375 18 Golf Pro 3 20.090 units 25.00 500 090 2548 23 a . Upon reviewing last year's audit workpapers , you also notice that the company previously wrote down the Basketball Pro 6 shoe to $29.00 per unit . The client recently fired most of its accounting staff , and therefore forgot to book an I CM adjustment for this year . Assuming that these were the only items needing an adjustment for the year how much would you credit to the Inventory Reserve for the current year ? ( Assume the no extrapolation is required . )