Smart Information Technology Company has the following cost and net realizable value data at December 31, 2021:

Question:

a. Calculate the lower of cost and net realizable value valuation assuming Smart Information Technology Company applies LCNRV to individual products.

b. What adjustment should the company record if it uses a perpetual inventory system?

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Accounting Principles Volume 1

ISBN: 978-1119502425

8th Canadian Edition

Authors: Jerry J. Weygandt, Donald E. Kieso, Paul D. Kimmel, Barbara Trenholm, Valerie Warren, Lori Novak

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Question Posted: Mar 04, 2020 12:37 PM

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Smart Information Technology Company has the following cost and net realizable value data at December 31, 2021:

Question:

Inventory Categories Personal computers Cost Net Realizable Value $27,000 $21,500 Servers 18,000 19,500 Total solution printers 10,000 8,500

Step by Step Answer:

a Inventory Categories Cost NRV LCNRV Adj Personal computers 27000 21500 ...View the full answer

Accounting Principles Volume 1

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