Suppose management estimated the market valuation of some obsolete inventory at

Question

Suppose management estimated the market valuation of some obsolete inventory at $99,000; this inventory was recorded at $120,000, which resulted in recognizing a loss of $21,000. The auditors obtained the following information:The inventory in question could be sold for an amount between $78,000 and $92,000. The costs of advertising and shipping could range from $5,000 to $7,000. Prepare the appropriate accounting entry. (In cases where no entry is required, please select the option "No journal entry required" for your answer to grade correctly. Leave no cells blank - be certain to enter "0" wherever required. Omit the "$" sign in your response.) General Journal Debit Credit Loss (COGS) ? Inventory ?

Explanation / Answer

A. is 12,000

Reason: Write down the inventory to the nearest end of the auditors

Related Questions

Navigate

• Browse (All)
• Browse S
• Subjects

---