Picture Perfect Camera Shop is determining the lower of cost and net realizable value of its inventory. The following data are available at December 31:

Instructions
(a) Determine the lower of cost and net realizable value of the ending inventory.
(b) Prepare the journal entry required, if any, to record the adjustment from cost to net realizable value assuming Picture Perfect Camera Shop uses a perpetual inventory system.
(c) What information regarding its inventory will Picture Perfect Camera Shop need to report in the notes to its financial statements?

Transcribed Image Text:

Net Realizable Value $600 425 124 220 UnitsUnit Cost Cameras: Nikon Canon 15 17 $675 400 135 215 Lenses: Sony Sigma 20