Bradbury plc runs a small chain of retail shops selling fashion jewellery. The jewellery is acquired from a wholesaler. Bradburys accounting date is 31^st December. On 31^st December 2020, all items of inventory were counted and valued at their purchase cost. It was then agreed that there were some items that were damaged and would have to be thrown away, and some lines that were not selling well and that would have to be re-priced for a quick sale. Information on this is as follows:

Inventory at cost on 31^st December 2020: 120,300

Cost of damaged items: 5,100

Cost of items to be re-priced: 6,200

Estimated net selling value of re-priced items: 1,000

Your task:

(a) What is the value of closing inventory that should be shown on the SOFP as at 31^st December 2020?

(b) Record the inventory write-down that needs to take place using the expanded accounting equation.