Question

During fiscal 2014, BlackBerry Limited wrote down its BB10 smartphone inventory by approximately $1,700,000,000 because its cost exceeded its net realizable value.

Answer 1

Based on the BB10 smartphone being written down by $1,700,000, the journal entry would involve debiting Cost of goods sold and crediting Inventory.

Why would the above be done?

The question seeks the journal entry of the above write down. The inventory will be written down by $1,700,000 and this will be charged to the Cost of goods sold.

The journal entry is:

Date                     Account title                                       Debit          Credit

2014                    Cost of goods sold                       $1,700,000

                            Inventory                                                         $1,700,000

Find out more on writing down inventory at brainly.com/question/5771882.