ACME Incorporated, a public company, has the following inventory information at its December 31 year end:...

 

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ACME Incorporated, a public company, has the following inventory information at its December 31 year end: Dehydrated vegetables: Peas Corn Carrots Cost 70,000 65,000 35,000 NRV 60,000 50,000 40,000 Cost is taken from ACME's accounting records and NRV is based on estimated selling price less the estimated costs to complete and sell the goods. Required: Prepare the journal entry necessary to adjust inventory to LCNRV assuming the company uses the valuation allowance method and adjusts the items based on individual items. The current balance in the allowance to reduce inventory to NRV is an $800 Debit. Please show calculations below the journal entry. (4 marks) ACME Incorporated, a public company, has the following inventory information at its December 31 year end: Dehydrated vegetables: Peas Corn Carrots Cost 70,000 65,000 35,000 NRV 60,000 50,000 40,000 Cost is taken from ACME's accounting records and NRV is based on estimated selling price less the estimated costs to complete and sell the goods. Required: Prepare the journal entry necessary to adjust inventory to LCNRV assuming the company uses the valuation allowance method and adjusts the items based on individual items. The current balance in the allowance to reduce inventory to NRV is an $800 Debit. Please show calculations below the journal entry. (4 marks)

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Peas Corn Carrots Totals Product Requirement a Cost Requirement b Gener... View the full answer