During its second and third quarters of fiscal 2014, BlackBerry Limited wrote down its BB10 smart phone inventory by approximately $ 1,700,000,000 because its cost exceeded its market value. Show the effects of this adjustment on the accounting equation and show the journal entry that the company would have made to record it.
Answer to relevant QuestionsIndicate the most likely effect of the following changes in inventory management on the inventory turnover ratio (1 for increase, 2 for decrease, and NE for no effect). _____ a. Inventory delivered by suppliers daily (small ...Assume the 2015 ending inventory of Shea’s Shrimp Shack was understated by $ 10,000. Explain how this error would affect the amounts reported for cost of goods sold and gross profit for 2015 and 2016. In its first month of operations, Literacy for the Illiterate opened a new bookstore and bought merchandise in the following order: (1) 300 units at $ 7 on January 1, (2) 450 units at $ 8 on January 8, and (3) 750 units at $ ...Refer to the information in E7-5. Assume Oahu Kiki applies its inventory costing method perpetually at the time of each sale. The company sold 240 units between January 16 and 23. Calculate the cost of ending inventory and ...Courtney Company uses a periodic inventory system. The following data were available: beginning inventory, 1,000 units at $ 35; purchases, 4,000 units at $ 38; operating expenses (excluding income taxes), $ 91,500; ending ...
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