Calabogie Camera Shop Ltd. reports the following cost and net realizable value information for its inventory at
Question:
Calabogie Camera Shop Ltd. reports the following cost and net realizable value information for its inventory at December 31:
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Instructions
(a) Determine the lower of cost and net realizable value of the ending inventory.
(b) Prepare the adjusting journal entry required, if any, to record the lower of cost and net realizable value of the inventory assuming Calabogie Camera Shop uses a perpetual inventory system.
(c) A physical inventory count at December 31 found that two of the Canon cameras were badly damaged. It was determined they had no resale value. Prepare the adjusting entry required, if any, to record the damaged cameras.
The ending inventory is the amount of inventory that a business is required to present on its balance sheet. It can be calculated using the ending inventory formula Ending Inventory Formula =...
Step by Step Answer:
a Units CostUnit Total Cost NRVUnit Total NRV LCNRV Cameras Sony 4 175 700 160 ...View the full answer
Financial Accounting Tools for Business Decision Making
ISBN: 978-1118644942
6th Canadian edition
Authors: Paul D. Kimmel, Jerry J. Weygandt, Donald E. Kieso, Barbara Trenholm, Wayne Irvine
