1. Suppose Compass Box had whisky that they had bought 6 years ago as a new fill whisky with inventorial costs incurred to date (i.e. historic cost) of £300, completion cost of £130, and an expected selling price of £600. Assume that the cost to buy comparable whisky on the spot market (i.e. 
2. replacement cost) is more than £300. What journal entries would be required if:
   1. The selling price dropped to £500?
   2. The selling price dropped to £400?
   3. The selling price remained at £600, but the replacement cost dropped to £100?
   4. The selling price dropped to £400 and the replacement cost dropped to £100?
   5. The selling price previously dropped to £400 and then recovered to £650?

Answer rating: 100% (QA)

I f The selling price dropped to 500 The journal entry to record the sale of the whisky at 500 would ... View the full answer