Answer and Explanation:
1. The computation of carrying value of inventory is shown below:-
Product Cost NRV Inventory Value which is lesser
101 $122000 $101,000 $101,000
102 $91,000 $111,000 $91,000
103 $61,000 $51,000 $51,000
104 $31,000 $51,000 $31,000
Total $305,000 $314,000 $274,000
2. The Journal entry is shown below:-
a. Cost of Goods sold Dr, $31,000
To Inventory $31,000
(Being write off inventory is recorded)
b. Loss on inventory write off Dr, $31,000
To Inventory $31,000
(Being write off inventory is recorded)
