Apricot Company sells a variety of items to its customers. At December 31, the balance of Apricot’s ending inventory account was P5,000,000 and the allowance to reduce inventory to NRV account before any adjustment was P200,000. Relevant information about the inventories and the breakdown of inventory cost and market data at December 31 follows: Item Cost NRV A 1,000,000 700,000 B 1,500,000 1,600,000 C 1,700,000 1,450,000 D 800,000 950,000 Total 5,000,000 4,700,000 How much is the balance of Allowance to Reduce Inventory to NRV after an appropriate adjusting entry is made at December 31?
Apricot Company sells a variety of items to its customers. At December 31, the balance of Apricot’s ending inventory account was P5,000,000 and the allowance to reduce inventory to NRV account before any adjustment was P200,000. Relevant information about the inventories and the breakdown of inventory cost and market data at December 31 follows: Item Cost NRV A 1,000,000 700,000 B 1,500,000 1,600,000 C 1,700,000 1,450,000 D 800,000 950,000 Total 5,000,000 4,700,000 How much is the balance of Allowance to Reduce Inventory to NRV after an appropriate adjusting entry is made at December 31?
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter7: Inventories: Cost Measurement And Flow Assumptions
Section: Chapter Questions
Problem 14RE: On January 1 of Year 1, Dorso Company adopted the dollar-value LIFO method of inventory costing....
Related questions
Topic Video
Question
24.Apricot Company sells a variety of items to its customers. At December 31, the balance of Apricot’s ending inventory account was P5,000,000 and the allowance to reduce inventory to NRV account before any adjustment was P200,000. Relevant information about the inventories and the breakdown of inventory cost and market data at December 31 follows:
Item Cost NRV
A 1,000,000 700,000
B 1,500,000 1,600,000
C 1,700,000 1,450,000
D 800,000 950,000
Total 5,000,000 4,700,000
How much is the balance of Allowance to Reduce Inventory to NRV after an appropriateadjusting entry is made at December 31?
Item Cost NRV
A 1,000,000 700,000
B 1,500,000 1,600,000
C 1,700,000 1,450,000
D 800,000 950,000
Total 5,000,000 4,700,000
How much is the balance of Allowance to Reduce Inventory to NRV after an appropriate
a. 550,000
b. 350,000
c. 300,000
d. 200,000
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning
Financial Accounting: The Impact on Decision Make…
Accounting
ISBN:
9781305654174
Author:
Gary A. Porter, Curtis L. Norton
Publisher:
Cengage Learning
College Accounting, Chapters 1-27
Accounting
ISBN:
9781337794756
Author:
HEINTZ, James A.
Publisher:
Cengage Learning,
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning
Financial Accounting: The Impact on Decision Make…
Accounting
ISBN:
9781305654174
Author:
Gary A. Porter, Curtis L. Norton
Publisher:
Cengage Learning
College Accounting, Chapters 1-27
Accounting
ISBN:
9781337794756
Author:
HEINTZ, James A.
Publisher:
Cengage Learning,
Principles of Accounting Volume 1
Accounting
ISBN:
9781947172685
Author:
OpenStax
Publisher:
OpenStax College
Cornerstones of Financial Accounting
Accounting
ISBN:
9781337690881
Author:
Jay Rich, Jeff Jones
Publisher:
Cengage Learning