Your client has introduced a significant upgrade of its products and has asked you to perform an obsolescence review of a parts inventory.

Youselect a monetary unit sample.

The sample disclosed items for which write-downs to lower of cost or market is appropriate.

The estimated (projected) write-down is$320,000.The 90% two-sided confidence interval on that estimate is:

lower confidence limit [LCL],$100,000;

upper confidence limit [UCL],$650,000.

The maximum tolerable misstatement is $400,000 and the planned confidence level is 95% (2-sided).

a.Present the results graphically, with numbers.

b.Describe those results in words [i.e., verbally].

c.Present another graph giving the permissible range for an adjusting journal entry [AJE], with numbers.

d.Give an acceptable AJE [DR and CR] in good accounting form.