In early 2024, Woof's Pet Shop discovered that some of its inventory of dogs were not...

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In early 2024, Woof's Pet Shop discovered that some of its inventory of dogs were not what the supplier purported them to be. More than 450 puppies that were supposed to be purebred (and therefore expensive) were in fact sired by parents with unknown history. As of the fiscal year ended December 31, 2023, 300 of these puppies had been sold while 150 remained in inventory. Purebred puppies cost $80 each, and they would retail for $305. Non-purebreds have replacement cost of $15 each, and the estimated sale price is $50 each. Woof is pursuing the supplier to obtain a refund for the cost difference. However, whether there will be compensation is uncertain. Required Requirement a. Record the journal entry for the write-down of puppy inventory on December 31, 2023. Note any assumptions necessary. The puppy inventory needs to be written down because the net realizable value (NRV) per puppy is lower than the cost. Now, prepare the journal entry for the write-down of puppy inventory on December 31, 2023. (Record debits first, and then credits. Explanations are not required.) Accounts Debit Credit In early 2024, Woof's Pet Shop discovered that some of its inventory of dogs were not what the supplier purported them to be. More than 450 puppies that were supposed to be purebred (and therefore expensive) were in fact sired by parents with unknown history. As of the fiscal year ended December 31, 2023, 300 of these puppies had been sold while 150 remained in inventory. Purebred puppies cost $80 each, and they would retail for $305. Non-purebreds have replacement cost of $15 each, and the estimated sale price is $50 each. Woof is pursuing the supplier to obtain a refund for the cost difference. However, whether there will be compensation is uncertain. Required Requirement a. Record the journal entry for the write-down of puppy inventory on December 31, 2023. Note any assumptions necessary. The puppy inventory needs to be written down because the net realizable value (NRV) per puppy is lower than the cost. Now, prepare the journal entry for the write-down of puppy inventory on December 31, 2023. (Record debits first, and then credits. Explanations are not required.) Accounts Debit Credit