Required information Problem 6-6B Record transactions using a perpetual system, prepare a partial income statement, and adjust for the lower of cost and net realizable value(L06-2, 6-3, 6-4, 6-5, 6-6) [The following information applies to the questions displayed below. At the beginning of November, Yoshi Inc.'s inventory consists of 52 units with a cost per unit of $96. The following transactions occur during the month of November. November 2 Purchase 80 units of inventory on account from Toad Inc. for $100 per unit, terms 1/10, n/30. November 3 Pay cash for freight charges related to the November 2 purchase, $320. November 9 Return 16 defective units from the November 2 purchase and receive credit. November 11 Pay Toad Inc. in full. November 16 Sell 100 units of inventory to customers on account, $13,200. [Hint: The cost of units sold from the November 2 purchase includes $100 unit cost plus $5 per unit for freight less $1 per unit for the purchase discount, or $104 per unit.] November 20 Receive full payment from customers related to the sale on November 16. November 21 Purchase 62 units of inventory from Toad Inc. for $106 per unit, terms 3/10, n/30. November 24 Sell 70 units of inventory to customers for cash, $8,300. (Note: For calculating the cost of inventory sold, ignore the possible purchase discount on November 20.) Problem 6-6B Part 3 3. Prepare the top section of the multiple-step income statement through gross profit for the month of November after the adjustment for lower of cost and net realizable value. YOSHI INC. Multiple-step Income Statement (partial) For the month of November Required information Problem 6-4B Report inventory using lower of cost and net realizable value (L06-6) [The following information applies to the questions displayed below. A home improvement store, like Lowe's, carries the following items: Inventory Items Quantity Unit Cost Unit NRV Hammers 120 $ 6.60 $ 7.10 Saws 40 9.60 8.60 Screwdrivers 120 1.60 2.20 Drills 30 24.60 21.20 1-gallon paint 150 5.10 4.60 cans Paintbrushes 170 5.60 6.10 Problem 6-4B Part 4 4. The write-down of inventory from cost to market net realizable value reduces total assets and increases total expenses, leading to lower net income and lower retained earnings. True or False True False