Crane's Gift Shop uses a perpetual inventory system and the FIFO cost formula for valuing inventory. The company is now in the

process of comparing the cost of its inventory with its net realizable value. The following data are available at Crane's Gift Shop's year

end, December $31$:

$($a$)$

Correct Answer

Your answer is correct.

Determine the lower of cost and net realizable value of the ending inventory assuming Crane's Gift Shop applies LCNRV on

individual items.

Lower of cost and net realizable value

$

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Solution

List of Accounts

Attempts: $1$ of $1$ used

Question Part Score

$($b$)$

Prepare the journal entry required, if any, to record the adjustment from cost to net realizable value. $($Credit account titles are

automatically indented when the amount is entered. Do not indent manually. If no entry is required, select $"$No Entry" for the account titles

and enter $0$ for the amounts. List debit entry before credit entry.$)$

Account Titles

Debit

Credit