Use the following information for questions 1 & 2 RAC Corp sells refrigerators and dishwashers. Information related to the inventory of RAC Corp is provided below.

Use the following information for questions 1 & 2 RAC Corp sells refrigerators and dishwashers. Information related to the inventory of RAC Corp is provided below. Cost - Replacement Cost - Net Realizable Value - Net Realizable Value Less a Normal Profit Margin Refrigerator Models

Elite 80,000 - 70,000 - 80,000 - 60,000

Standard 100,000 - 110,000 - 100,000 - 70,000

Economy 90,000 - 75,000 - 90,000 - 80,000

Dishwasher Models

Pro 150,000 - 140,000 - 170,000 - 155,000

Residential 95,000 - 85,000 - 92,000 - 80,000 1. Calculate the final inventory value for RAC Corp based on individual inventory items (5 points):

2. Record the journal entry to write-down inventory assuming the allowance method is used (4 points).