Company A recent required to record an inventory write down of $5,200 because the net realizable value of its inventory was less than cost. Which of the following journal entries would be recorded? A. Debit sales. Credit inventory. B. Debit costs of goods sold. Credit inventory. C. Debit inventory. Credit sales. D. Debit cost of goods sold. Credit sales.

Q: fill in the items below, indicating which items will be understated, overstated, or correctly stated

A: Given information is: Assume that in Year 1, the ending merchandise inventory is overstated by…

Q: A company reports inventory using the lower of cost and net realizable value (NRV). Below is…

A: Adjusting entries are prepared at the end of the accounting period to ensure the accrual base…

Q: Using a periodic inventory system, Bertram Company records inventory at lower of cost or NRV using…

A: Periodic system of inventory is the one which states the inventory under that the updates are made…

Q: What is the cost-to-retail percentage to be used for ending inventory calculations?

A:

Q: Based on the following data for the current year, what is the inventory turnover? Sales on account…

A: Introduction: Inventory turnover is a financial ratio that indicates how frequently a company's…

Q: A company that uses a perpetual inventory system made the following cash purchases and sales.  There…

A: let us first  find the cost of  goods sold and gross margin for all the three methods. 1)  FIFO -…

Q: 46. When a company uses the periodic inventory system in accounting for its merchandise inventory,…

A: Inventory is one of the important current asset of the business. It includes inventory of raw…

Q: In taking a physical inventory at the end of Year 1, Grant Company forgot to count certain units and…

A: Given information is:  At the end of Year 1, Grant Company forgot to count certain units and…

Q: An error in the physical count of goods on hand at the end of the current period resulted in a $3000…

A: Any understatement of  ending inventory results in decrease in net income. In Trading Account…

Q: Required information [The following information applies to the questions displayed below.] A company…

A: Cost of ending inventory (before adjustment)=Quantity×Unit Cost

Q: Filimonov Inc. has the following information related to purchases and sales of one of its inventory…

A: LIFO: LIFO stands for Last-In, First-Out. As its name suggest, this method assumes that the most…

Q: Inventory information for Part 311 of Crane Corp. discloses the following information for the month…

A: Cost of goods available for sale = Beginning Inventory + PurchasesCost of goods available for sale =…

Q: Required: 1. Determine the inventory on June 30 and the cost of goods sold for the three-month…

A: "Since you have posted a question with multiple sub-parts, we will be answering the first 3…

Q: Supply the missing dollar amounts for each of the following independent cases: Sales Revenue…

A: Beginning inventory +Purchases =Cost of goods available for saleCost of goods -Ending inventory…

Q: A company that uses a perpetual inventory system purchased inventory on account and later returned…

A: Under perpetual inventory system, inventory account is used instead of purchases account. For every…

Q: For all exercises, assume the perpetual inventory system is used unless stated otherwise. Measuring…

A: a. Correct Cost of goods sold = Cost of goods sold + overstated Ending merchandise inventory =…

Q: The Merchandise Inventory account balance is $56,000. A physical count of inventory reveals that the…

A: SOLUTION- AS PER THE INFORMATION GIVEN IN THE QUESTION  WE HAVE- ACTUAL MERCHANDISE INVENTORY =…

Q: In taking a physical inventory at the end of Year 1, Grant Company forgot to count certain units and…

A: Year 1 cost of goods sold Increase by $17,500 Year 1 net income Decrease by $17,500 Year 2 cost…

Q: nventory Costing Methods (ADOPTED) The following information was made available for a particular…

A: Solution 1: Computation of COGS and ending inventory - Periodic FIFO Particulars Cost of goods…

Q: The following information pertains merchandise inventory of Bloom Company at the end of year.  Apply…

A: As per the accounting standards, the inventory is valued at, lower of cost or market price. In the…

Q: The following data is available for Corona Trading: Cost Inventory, January 1 Purchases (net)…

A: THE retail inventory method is used by the retailers to estimate their ending inventory balance .…

Q: Requirements a. At what amount was Cost of Goods Sold reported in the company's year-end income…

A: A perpetual inventory system is an inventory recording method in which the inventory transaction is…

Q: Smart Company prepared its annual financial statements dated December 31. The company reported its…

A: Under LCM/NRV approach, NRV of ending inventory is compared with the purchase cost and ending…

Q: Required information [The following information applies to the questions displayed below.] A company…

A: The cost of inventory shall be computed by using lower of cost and NRV. It can be calculated  Cost…

Q: On balance day, a physical inventory count and cost was $10,250, and the market value of inventory…

A: Note: As per relevant Standard, inventory is valued at lower of cost or Net relizable value. where,…

Q: he following table summarises the receipts and issues of an item of inventory, by the stores of a…

A: FIFO is the first in first out inventory method which says that inventory purchased first should be…

Q: Inventory Costing: FIFO Filimonov Inc. has the following information related to purchases and sales…

A: Under the FIFO method, goods purchased earlier are sold first, i.e. oldest product in the company's…

Q: Question 1   When the perpetual inventory system is used, the Cost of Sales is:     always…

A: "Since you have posted a question with multiple sub parts, we will solve first three sub parts for…

Q: A company reports inventory using the lower of cost and net realizable value. Below is information…

A: a. Inventory Cost NRV Cost per unit Quantity Ending inventory A 37 39 37 13 $481 B 44 41 41…

Q: Inventory information for Part 311 of Tamarisk Corp. discloses the following information for the…

A: Since you have posted a question with multiple sub-parts, we will solve the first three subparts for…

Q: Lucia Company reported cost of goods sold for Year 1 and Year 2 as follows: Year 1 Year 2 Beginning…

A: The ending inventory is the inventory left in hand at the end of the year.

Q: A business using the retail method of inventory costing determines that merchandise inventory at…

A: Ending inventory = Merchandise inventory at retail price x Ratio of cost

Q: Use the above information to compute inventory turnover for Year 3 and Year 2, and its days' sales…

A: 1. Average Inventory = (Begining inventory + Ending inventory) / 2 2. Inventory Turnover ( in times…

Q: Springer Anderson Gymnastics prepared its annual financial statements dated December 31. The company…

A: 1. Item Quantity Cost per unit Replacement Cost per unit LCM/NRV per unit Ending Inventory on LCM…

Q: Telamark Company uses the moving weighted average method for inventory costing. The following…

A: calculation of above requirement are as follows:

Q: The following information was made available for a particular product sold by Blue Company: April 2…

A: Particulars Units Cost per Unit Total Purchase 700 158 110600 Purchase 800 164 131200…

Q: What is ending inventory and cost of goods sold under FIFO, LIFO and average cost under the…

A: The Numerical has covred the concept of Inventory Valuation Under FIFO, LIFO, Average Methode In the…

Q: please answer 4 and 5? answer are at the bottom what is the process to get these answers

A: 4. Determine the cost of ending inventory using perpetual FIFO method. Hence, the cost of ending…

Q: The following information applies to the questions displayed below.]   A company reports inventory…

A: Concept:

Q: 3. Refer to the information below that shows Boston Cycles' inventory data for the year ending…

A: Overstatement of ending inventory will decrease cost of goods sold and will increase gross profit in…

Inventory Valuation

Before discussing the topic inventory valuation let’s discuss the meaning of inventory. In accounting, inventory is also known as stock. Inventory means all the finished goods, materials, merchandise that a business holds for the purpose of selling it in the market with the motive of earning profit.