The cost of Piper Music Inc.'s inventory at December 31, 2014, is $54,700. Its net realizable value
Question:
The cost of Piper Music Inc.'s inventory at December 31, 2014, is $54,700. Its net realizable value on the same date is $52,500.
(a) Prepare the adjusting journal entry required, if any, to record the decline in value of the inventory, assuming Piper Music uses a perpetual inventory system.
(b) If Piper Music has the same inventory on hand at December 31, 2015, with a net realizable value of $55,000, what amount should it report its inventory at on that date?
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Related Book For 
Financial Accounting Tools for Business Decision Making
ISBN: 978-1118644942
6th Canadian edition
Authors: Paul D. Kimmel, Jerry J. Weygandt, Donald E. Kieso, Barbara Trenholm, Wayne Irvine
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