Question
A home improvement store, like Lowes , carries the following items: Inventory Items Quantity Unit Cost Unit NRV Hammers 100 $7.60 $8.10 Saws 50 10.60
A home improvement store, like Lowes, carries the following items:
| Inventory Items | Quantity | Unit Cost | Unit NRV |
|---|---|---|---|
| Hammers | 100 | $7.60 | $8.10 |
| Saws | 50 | 10.60 | 9.60 |
| Screwdrivers | 130 | 2.60 | 3.20 |
| Drills | 40 | 25.60 | 23.20 |
| One-gallon paint cans | 160 | 6.10 | 5.60 |
| Paintbrushes | 180 | 6.60 | 7.10 |
Required: 2. Record any necessary adjusting entry to write down inventory from cost to net realizable value. 3. Determine the financial statement effects of using lower of cost and net realizable value to report inventory.
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Auditing And Assurance Theory And Practice
Authors: Clifford Gomez
1st Edition
8120345665, 978-8120345669
