At the end of 20X6, OverBright Lighting Limited has a large stock of incandescent lighting fixtures that
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In early 20X7, OverBright’s production manager decided that the fixtures can be adapted to not only accept the new LED lighting but also compete quite effectively with new products coming on the market. During 2007, the fixtures are converted at a cost of $ 50,000. The sales manager estimates that after the conversion, the newly adapted inventory can be repriced to fetch $ 370,000 (before 10% sales commission) in the market.
Required:
Using the valuation allowance method, prepare the appropriate journal entries to record inventory adjustments at the end of each of 20X6 and 20X7.
The records of Loren Movers Ltd. contained the following inventory data:
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Related Book For
Intermediate Accounting
ISBN: 978-0071339476
Volume 1, 6th Edition
Authors: Beechy Thomas, Conrod Joan, Farrell Elizabeth, McLeod Dick I
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