Exercise 6-13 (Algo) Calculate inventory using lower of cost and net realizable value (LO6-6) Office Furnishings reports inventory using the lower of cost and net realizable value (NRV). Below is information related to its year-en inventory Required: 1. Calculate the total recorded cost of ending inventory before any adjustments. 2. Calculate ending inventory using the lower of cost and net realizable value. 3. Record any necessary adjusting entry for inventory. 4. Determine the impact of the adjusting entry in the financial statements. Complete this question by entering your answers in the tabs below. Calculate the total recorded cost of ending inventory before any adjustments. Required information Exercise 6-9 (Algo) Record transactions using a perpetual system (LO6-5) [The following information applies to the questions displayed below] Littleton Books has the following transactions during May. May 2 Purchases books on account from Readers Wholesale for $3,600, terms 3/10,n/30. May 3 Pays cash for freight costs of $170 on books purchased fron Readers. May 5 Returns books with a cost of $300 to Readers because part of the order is incorrect. May 10 Pays the full amount due to Readers. May 30 Sells all books purchased on May 2 (less those returned on May 5) for $3,708 on accour xercise 6.9 (Algo) Part 2 2. Assume that payment to Readers is made on May 24 instead of May 10. Record this payment. (If no ransaction/event, select "No Journal Entry Required" in the first account field.) Journal entry worksheet Record payment of the full amount due to Readers. Note: Enter debits before credits. Exercise 6-9 (Algo) Record transactions using a perpetual system (LO6-5) [The following information applies to the questions displayed below] Littleton Books has the following transactions during May. May 2 Purchases books on account fron Readers Wholesale for $3,000, teras 3/10,n/30. May 3 Pays cash for freight costs of $170 on books purchased from Readers. May 5 Returns books with a cost of $300 to Readers because part of the order is incorrect. May 10 Pays the full amount due to Readers. May 30 Sells al1 books purchased on May 2 (less those returned on May 5) for $3,760 on account. xercise 6.9 (Algo) Part 1 equired: Record the transactions of Littleton Books, assuming the company uses a perpetual inventory system. ansaction/event, select "No Journal Entry Required" in the first account field.) Journal entry worksheet Record purchase of books on account from Readers Wholesale for $3,000, terms 3/10,n/30. Note: Enter debits before credits
