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December 31, 2022: At cost: $589000 At lower of cost and net realizable value (NRV): $537000 December 31, 2023: At cost: $777000 At lower of
December 31, 2022: At cost: $589000 At lower of cost and net realizable value (NRV): $537000 December 31, 2023: At cost: $777000 At lower of cost and net realizable value (NRV): $737000 Wildhorse uses a periodic inventory system and an allowance account to adjust its inventory from cost to the lower of cost and NRV. Wildhorse's 2022 journal entry to adjust its inventory from cost to the lower of cost and net realizable value (NRV) will include a debit of $52000 to Loss on Inventory Due to Decline in NRV. credit of $52000 to Loss on Inventory Due to Decline in NRV. credit of $52000 to Inventory. debit of $52000 to Allowance to Reduce Inventorv to NRV
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