Question
The following table details ABC Corps inventory balance at cost, as measured by FIFO, and its net realizable value. Inventory at cost, 12/31/Y1: $116,000 Inventory
The following table details ABC Corps inventory balance at cost, as measured by FIFO, and its net realizable value.
- Inventory at cost, 12/31/Y1: $116,000
- Inventory at NRV, 12/31/Y1: $114,400
- Inventory at cost, 12/31/Y2: $128,700
- Inventory at NRV, 12/31/Y2: $125,200
- Inventory at cost, 12/31/Y3: $153,000
- Inventory at NRV, 12/31/Y3: $164,000
Based on this data, the entry to adjust ABC Corps Account to Reduce Inventory to NRV account at 12/31/Y3 would be:
The following table details ABC Corps inventory balance at cost, as measured by FIFO, and its net realizable value.
- Inventory at cost, 12/31/Y1: $116,000
- Inventory at NRV, 12/31/Y1: $114,400
- Inventory at cost, 12/31/Y2: $128,700
- Inventory at NRV, 12/31/Y2: $125,200
- Inventory at cost, 12/31/Y3: $153,000
- Inventory at NRV, 12/31/Y3: $164,000
Based on this data, the entry to adjust ABC Corps Account to Reduce Inventory to NRV account at 12/31/Y3 would be:
$12,900 gain
$1,900 gain
$11,000 gain
$1,900 loss
$1,600 loss
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Forensic And Investigative Accounting
Authors: D. Larry Crumbley, Lester E. Heitger, Stevenson Smith
5th Edition
0808026879, 9780808026877
