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Question 23 3 pts Frontier Bicycle Technology Pty Ltd is a bicycle retailer who does not specialise in the sale of bicycles but in new

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Question 23 3 pts Frontier Bicycle Technology Pty Ltd is a bicycle retailer who does not specialise in the sale of bicycles but in new technologies that will protect the ever-growing bicycle commuter from potential injury. The following information was extracted from Frontier Bicycle Technology Pty Ltd on 30 June 2020 after the inventory_qualitative review was completed. The general journal entry arising from the above inventory review as per AASB 102 addressing the concept of Prudence Frontier Bicycle Technology Pty Ltd - General Journal Date Details DR CR June 30, 2020 Inventory write-down 2,060 Inventory 2.060 Required: What would be the effect on the accounting equation if the qualitative review of prudence were not adopted? The current asset inventory would be overstated by $2,060 and the inventory write-down would be understated by $2,060. The flow on impact would mean that net profit would be overstated by $2,060 and as a result Retained earnings in the statement of financial position would be overstated by $2,060. The current asset inventory would be understated by $2,060 and the inventory write-down would be understated by $2,060. The flow on impact would mean that net profit would be overstated by $2,060 and as a result Retained earnings in the statement of financial position would be overstated by $2,060 The current asset inventory would be overstated by $2,060 and the inventory write-down would be understated by $2,060. The flow on impact would mean that net profit would be understated by $2,060 and as a result Retained earnings in the statement of financial position would be overstated by $2,060 The current asset inventory would be overstated by $2,060 and the inventory write-down would be understated by $2,060. The flow on impact would mean that net profit would be overstated by $2,060 and as a result Retained earnings in the statement of financial position would be understated by $2,060 The current asset inventory would be overstated by $2,060 and the inventory write-down would be overstated by $2,060. The flow on impact would mean that net profit would be overstated by $2,060 and as a result Retained earnings in the statement of financial position would be overstated by $2,060

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