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Case 3: SMART BIKES (questions 14 - 16) SMART BIKES is a bicycle manufacturer In Rotterdam. There are currently four types of bicycles that the

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Case 3: SMART BIKES (questions 14 - 16) SMART BIKES is a bicycle manufacturer In Rotterdam. There are currently four types of bicycles that the company produces and sells to customers, namely Road Bikes, Mountain Bikes, Folding Bikes, and Electronic Bikes. SMART BIKES uses the lower-of-cost-or-net realizable value approach and applies the rule on an Individual Item basis. The company uses a single allowance account to keep track of all changes In the carrying value of Its Inventory. On 31-12-2019. SMART BIKES has the following ending Inventory for bikes: Product Original Estimated completion Expected selling price Estimated cost to sell cost Electric bikes E112 000 E17 000 2129 000 E8 000 Road bikes C186 000 216 000 214 000 E11 000 Folding bikes E148 000 E5 000 2164 000 E20 000 Mountain bikes C126 000 212 000 E163 000 E9 000 The Information on SMART BIKES' overall ending Inventories on 31-12-2020 and 31-12-2021 is presented below: 31-12-2020 E635 000 C540 000 31-12-2021 1629 000 543 500 The company uses an allowance account to keep track of changes In the carrying value of Its Inventor Prepare the Journal entries required on 31-12-2021, assuming that the inventory is recorded at LCNRV, use the loss method. Account Debit Credit Select Add a journal entry

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