Problem 6-4A (Algo) Report inventory using lower of cost and net realizable value (LO6-6) A local Chevrolet dealership carries the following types of vehicles: Inventory Items Quantity Unit Cost Unit NRV Vans Trucks $19,000 $17,000 7 16,400 15,400 2-door sedans 3 11,400 13,400 4-door sedans 5 15,400 18,400 Sports cars SUVS 1 29,000 32,000 6 26,800 20,000 Because of recent increases in gasoline prices, the car dealership has noticed a reduced demand for its SUVs, vans, and trucks Required: bes 1. Compute the total cost of the entire inventory. 2. Determine whether each inventory item would be reported at cost or net realizable value (NRV). Enter the amount of either the Unit Cost or Unit NRV in the "Lower of Cost and NRV per unit" column and then multiply this amount by the quantity of each inventory item and enter it in the Total column. 3. Record any necessary adjusting entry to write down inventory from cost to net realizable value. 4. Determine the financial statement effects of using lower of cost and net realizable value to report inventory. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Compute the total cost of the entire inventory. Total cost ces Because of recent increases in gasoline prices, the car dealership has noticed a reduced demand for its SUVs, vans, and trucks. Required: 1. Compute the total cost of the entire inventory. 2. Determine whether each inventory item would be reported at cost or net realizable value (NRV). Enter the amount of either the Unit Cost or Unit NRV in the "Lower of Cost and NRV per unit" column and then multiply this amount by the quantity of each inventory item and enter it in the Total column. 3. Record any necessary adjusting entry to write down inventory from cost to net realizable value. 4. Determine the financial statement effects of using lower of cost and net realizable value to report inventory Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Determine whether each inventory item would be reported at cost or net realizable value (NRV). Enter the amount of either the Unit Cost or Unit NRV in the "Lower of Cost and NRV per unit" column and then multiply this amount by the quantity of each inventory item and enter it in the Total column. Inventory Items Lower of Cost Cost or NRV and NRV per unit Total Vans Trucks 2-door sedans 4-door sedans Sports cars SUVS Total nces Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Record any necessary adjusting entry to write down inventory from cost to net realizable value. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) View transaction list Journal entry worksheet Record any necessary adjusting entry for inventory. Note: Enter debits before credits Transaction General Journal Debit Credit Record entry Clear entry View general journal Check my Cost or Unit NRV in the "Lower of Cost and NRV per unit" column and then multiply this amount by the quantity of each inventory item and enter it in the Total column. 3. Record any necessary adjusting entry to write down inventory from cost to net realizable value. 4. Determine the financial statement effects of using lower of cost and net realizable value to report inventory Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Determine the financial statement effects of using lower of cost and net realizable value to report inventory. (Make sure to enter amounts leading to account reduction with a minus sign.) Revenues Income Statement: Expenses Net Income Balance Sheet: Assets Liabilities Stockholders Equity Required 3 Regu