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harkovskaia [24]
3 years ago
6

A company's current LIFO inventory consists of 5,000 units purchased at $6 per unit. Replacement cost has now fallen to $5 per u

nit.
What is the entry the company must record to adjust inventory to market?
Business
2 answers:
guajiro [1.7K]3 years ago
8 0

Answer:

Debit Inventory write off (p/l)   $5,000

Credit Inventory $5,000

Being entries to write down inventory to its realizable amount.

Explanation:

Inventories IAS 2 requires that inventory be carried at the lower of cost or net realizable value (after an initial recognition at the cost). The cost includes the cost of the item and other associated cost such as freight . However, its carrying amount(cost) must be reviewed to ensure it is not higher than the realizable value.

Given that the replacement cost has now fallen to $5 per unit which is lower than the cost of $6, it means that the amount that can be realized from the sale of a unit is $5.

= $6 - $5

= $1

Total adjustment required = $1 * 5000

= $5,000

Entries required to write down inventory to its realizable value

Debit Inventory write off (p/l)   $5,000

Credit Inventory $5,000

Being entries to write down inventory to its realizable amount.

scoundrel [369]3 years ago
7 0

Answer:

The company must record to adjust inventory to market is

Debit Cost of Goods Sold $5,000; credit Merchandise Inventory $5,000.

5,000 units * ($6 - $5) = $5,000

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Suppose an economy has 10,000 people who are not working but looking and available for work and 90,000 people who are working. W
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<h3>In the given scenario unemployment rate is 10% </h3>

Explanation:

In the given problem,

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3 years ago
Read 2 more answers
The step in which a salesperson meets the customer for the first time is the __________ step of the creative selling process.
frosja888 [35]

The step in which a salesperson meets the customer for the first time is the <u>approach step</u> of the creative selling process.

<h3>Who is a saleperson?</h3>

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When a sales person meet a customer for the first time, the sales person need to first approach the customers  before marketing a product to the customer.

Therefore the step in which a salesperson meets the customer for the first time is the <u>approach step.</u>

Learn more about salesperson here:brainly.com/question/25586322

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Answer:

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The contract rules of the UCC regulate written agreement proceedings with  intangible assets and employment. UCC governs written agreement proceedings with commodities and tangible objects.

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