FOB Shipping Point, and there are no changes expected for shipping costs and import duties. JEC uses Question #5 Inventory (18 Marks) Jonah Electronics Corporation ("JEC") is in the business of selling electronics products. On December 2, 2016, JEC sent a purchase order to its Korean supplier to purchase 50 computers at a total invoice value of $60,000 on the basis of FOB Shipping Point Shipping costs from Korea to JEC's warehouse are $5,000 and import duties are 10% of the invoice value The computers were received at JEC's warehouse in Burnaby on December 31, 2016 During the actual shipment of the computers from Korea to Canada, the computers were damaged. Management of JEC estimates that the cost to repair the damaged goods would be $19.000. After commissions are 8% of the selling price. In addition, JEC offers all of its customers free delivery and jnstallation at no additional price to the customer, even though delivery and installation involves a cost to FEE of $30 per computer. At December 31, 2016, the Korean supplier would charge $1,150 per unit, a perpetual inventory system. Sales 2 Required: 1 If management of JEC is motivated to maximize net income, which inventory cost flow assumption would most likely be used for computers? Explain/Justify your answer. (6 Marks) What should be the balance of JEC's "Inventory" account at December 31, 2016 (prior to any write down of inventory)? Show your work (4 Marks) Prepare the journal entry to write down the inventory. (8 Marks) o 15 sale Commisson cure 3 ) Sil of the selling price and FOB Shipping Point, and there are no changes expected for shipping costs and import duties. JEC uses Question #5 Inventory (18 Marks) Jonah Electronics Corporation ("JEC") is in the business of selling electronics products. On December 2, 2016, JEC sent a purchase order to its Korean supplier to purchase 50 computers at a total invoice value of $60,000 on the basis of FOB Shipping Point Shipping costs from Korea to JEC's warehouse are $5,000 and import duties are 10% of the invoice value The computers were received at JEC's warehouse in Burnaby on December 31, 2016 During the actual shipment of the computers from Korea to Canada, the computers were damaged. Management of JEC estimates that the cost to repair the damaged goods would be $19.000. After commissions are 8% of the selling price. In addition, JEC offers all of its customers free delivery and jnstallation at no additional price to the customer, even though delivery and installation involves a cost to FEE of $30 per computer. At December 31, 2016, the Korean supplier would charge $1,150 per unit, a perpetual inventory system. Sales 2 Required: 1 If management of JEC is motivated to maximize net income, which inventory cost flow assumption would most likely be used for computers? Explain/Justify your answer. (6 Marks) What should be the balance of JEC's "Inventory" account at December 31, 2016 (prior to any write down of inventory)? Show your work (4 Marks) Prepare the journal entry to write down the inventory. (8 Marks) o 15 sale Commisson cure 3 ) Sil of the selling price and
