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Assume that Krautwwortz uses the indirect method when recording inventory at market. The allowance account has a credit balance of $300 before any adjustments necessary
Assume that Krautwwortz uses the indirect method when recording inventory at market. The allowance account has a credit balance of $300 before any adjustments necessary on December 31, 2006, and there are 300 units of product A and 400 units of Product B in ending inventory. What entry should Krautwortz make on December 31, 2006?
Dr Loss Due to Market Decline of Inventory....1,700
Cr Allowance to Reduce Inventory to Market...1,700
I know that is the correct answer, but I dont know how to get 1700. Please help. Thanks
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Sawyers Internal Auditing Enhancing And Protecting Organizational Value
Authors: The Internal Audit Foundation
7th Edition
1634540522, 9781634540520
