A retail company has inventory that cost $30 per unit. The retail price has historically been $40, however; due to a decrease in demand, the price has dropped and now the expected selling price is $32 per unit. The retailer pays $5 in direct costs to sell each product. At the end of the year, the company has 4,000 units in ending inventory.

Required: 

Prepare the journal entry at year end.

Answer rating: 100% (QA)

Certainly The journal entry at yearend for the retail companys inventory would look lik... View the full answer