Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Please answer this. Your client has introduced a significant upgrade of its products and has asked you to perform an obsolescence review of a parts
Please answer this.
Your client has introduced a significant upgrade of its products and has asked you to perform an obsolescence review of a parts inventory. You select a monetary unit sample. The sample disclosed items for which write-downs to lower of cost or market is appropriate The estimated (projected) write-down is $320,000. The 90% two-sided confidence interval on that estimate is: lower confidence limit (LCL) $100,000; upper confidence limit (UCL) $650,000. The maximum tolerable misstatement is $400,000 and the planned confidence level is 95% (2-sided). a. Present the results graphically, with numbers b. Describe those results in words [le, verballyl c. Present another graph elving the permissible range for an adjusting Journal entry (NIE, with numbers. d. Give an acceptable AJE (OR and CRI in good accounting form. a. b. Your client has introduced a significant upgrade of its products and has asked you to perform an obsolescence review of a parts inventory. You select a monetary unit sample. The sample disclosed items for which write-downs to lower of cost or market is appropriate The estimated (projected) write-down is $320,000. The 90% two-sided confidence interval on that estimate is: lower confidence limit (LCL) $100,000; upper confidence limit (UCL) $650,000. The maximum tolerable misstatement is $400,000 and the planned confidence level is 95% (2-sided). a. Present the results graphically, with numbers b. Describe those results in words [le, verballyl c. Present another graph elving the permissible range for an adjusting Journal entry (NIE, with numbers. d. Give an acceptable AJE (OR and CRI in good accounting form. a. b
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started