At the end of 2016, ABC Industries has four inventory items, two of which management believes...

    

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At the end of 2016, ABC Industries has four inventory items, two of which management believes should be written down. The cost and estimated NRVS per unit of the items are as follows: Quantity 200 520 NRV $ 320 180 Cost Item A $ 340 Item B 160 Item C 300 280 200 Item D 400 200 240 Required: 1. Determine the amount by which the inventory should be written down if lower-of-cost-or- NRV valuation is applied item-by-item. Prepare the journal entry to record the writedown. General Journal Date Account Titles and Explanation Debit Credit 2. Assume items A and B are related, while items C and D are related. Determine the inventory writedown if lower-of-cost-or-NRV, valuation is applied by category. Prepare the journal entry to establish an inventory allowance. General Journal Date Account Titles and Explanation Debit Credit 3. Suppose that in 2016, the NRV of item A rises to $360 by the end of the year. Prepare journal entries to record the recovery in value, if feasible, under each of the two methods. a) LCNRV applied item-by-item (required 1) General Journal Account Titles and Explanation Date Debit Credit b. LCNRV applied assuming A & B are related and C & D are related (required 2) General Journal Date Account Titles and Explanation Debit Credit b. LCNRV applied assuming A & B are related and C & D are related (required 2) General Journal Date Account Titles and Explanation Debit Credit At the end of 2016, ABC Industries has four inventory items, two of which management believes should be written down. The cost and estimated NRVS per unit of the items are as follows: Quantity 200 520 NRV $ 320 180 Cost Item A $ 340 Item B 160 Item C 300 280 200 Item D 400 200 240 Required: 1. Determine the amount by which the inventory should be written down if lower-of-cost-or- NRV valuation is applied item-by-item. Prepare the journal entry to record the writedown. General Journal Date Account Titles and Explanation Debit Credit 2. Assume items A and B are related, while items C and D are related. Determine the inventory writedown if lower-of-cost-or-NRV, valuation is applied by category. Prepare the journal entry to establish an inventory allowance. General Journal Date Account Titles and Explanation Debit Credit 3. Suppose that in 2016, the NRV of item A rises to $360 by the end of the year. Prepare journal entries to record the recovery in value, if feasible, under each of the two methods. a) LCNRV applied item-by-item (required 1) General Journal Account Titles and Explanation Date Debit Credit b. LCNRV applied assuming A & B are related and C & D are related (required 2) General Journal Date Account Titles and Explanation Debit Credit b. LCNRV applied assuming A & B are related and C & D are related (required 2) General Journal Date Account Titles and Explanation Debit Credit At the end of 2016, ABC Industries has four inventory items, two of which management believes should be written down. The cost and estimated NRVS per unit of the items are as follows: Quantity 200 520 NRV $ 320 180 Cost Item A $ 340 Item B 160 Item C 300 280 200 Item D 400 200 240 Required: 1. Determine the amount by which the inventory should be written down if lower-of-cost-or- NRV valuation is applied item-by-item. Prepare the journal entry to record the writedown. General Journal Date Account Titles and Explanation Debit Credit 2. Assume items A and B are related, while items C and D are related. Determine the inventory writedown if lower-of-cost-or-NRV, valuation is applied by category. Prepare the journal entry to establish an inventory allowance. General Journal Date Account Titles and Explanation Debit Credit 3. Suppose that in 2016, the NRV of item A rises to $360 by the end of the year. Prepare journal entries to record the recovery in value, if feasible, under each of the two methods. a) LCNRV applied item-by-item (required 1) General Journal Account Titles and Explanation Date Debit Credit b. LCNRV applied assuming A & B are related and C & D are related (required 2) General Journal Date Account Titles and Explanation Debit Credit b. LCNRV applied assuming A & B are related and C & D are related (required 2) General Journal Date Account Titles and Explanation Debit Credit At the end of 2016, ABC Industries has four inventory items, two of which management believes should be written down. The cost and estimated NRVS per unit of the items are as follows: Quantity 200 520 NRV $ 320 180 Cost Item A $ 340 Item B 160 Item C 300 280 200 Item D 400 200 240 Required: 1. Determine the amount by which the inventory should be written down if lower-of-cost-or- NRV valuation is applied item-by-item. Prepare the journal entry to record the writedown. General Journal Date Account Titles and Explanation Debit Credit 2. Assume items A and B are related, while items C and D are related. Determine the inventory writedown if lower-of-cost-or-NRV, valuation is applied by category. Prepare the journal entry to establish an inventory allowance. General Journal Date Account Titles and Explanation Debit Credit 3. Suppose that in 2016, the NRV of item A rises to $360 by the end of the year. Prepare journal entries to record the recovery in value, if feasible, under each of the two methods. a) LCNRV applied item-by-item (required 1) General Journal Account Titles and Explanation Date Debit Credit b. LCNRV applied assuming A & B are related and C & D are related (required 2) General Journal Date Account Titles and Explanation Debit Credit b. LCNRV applied assuming A & B are related and C & D are related (required 2) General Journal Date Account Titles and Explanation Debit Credit At the end of 2016, ABC Industries has four inventory items, two of which management believes should be written down. The cost and estimated NRVS per unit of the items are as follows: Quantity 200 520 NRV $ 320 180 Cost Item A $ 340 Item B 160 Item C 300 280 200 Item D 400 200 240 Required: 1. Determine the amount by which the inventory should be written down if lower-of-cost-or- NRV valuation is applied item-by-item. Prepare the journal entry to record the writedown. General Journal Date Account Titles and Explanation Debit Credit 2. Assume items A and B are related, while items C and D are related. Determine the inventory writedown if lower-of-cost-or-NRV, valuation is applied by category. Prepare the journal entry to establish an inventory allowance. General Journal Date Account Titles and Explanation Debit Credit 3. Suppose that in 2016, the NRV of item A rises to $360 by the end of the year. Prepare journal entries to record the recovery in value, if feasible, under each of the two methods. a) LCNRV applied item-by-item (required 1) General Journal Account Titles and Explanation Date Debit Credit b. LCNRV applied assuming A & B are related and C & D are related (required 2) General Journal Date Account Titles and Explanation Debit Credit b. LCNRV applied assuming A & B are related and C & D are related (required 2) General Journal Date Account Titles and Explanation Debit Credit At the end of 2016, ABC Industries has four inventory items, two of which management believes should be written down. The cost and estimated NRVS per unit of the items are as follows: Quantity 200 520 NRV $ 320 180 Cost Item A $ 340 Item B 160 Item C 300 280 200 Item D 400 200 240 Required: 1. Determine the amount by which the inventory should be written down if lower-of-cost-or- NRV valuation is applied item-by-item. Prepare the journal entry to record the writedown. General Journal Date Account Titles and Explanation Debit Credit 2. Assume items A and B are related, while items C and D are related. Determine the inventory writedown if lower-of-cost-or-NRV, valuation is applied by category. Prepare the journal entry to establish an inventory allowance. General Journal Date Account Titles and Explanation Debit Credit 3. Suppose that in 2016, the NRV of item A rises to $360 by the end of the year. Prepare journal entries to record the recovery in value, if feasible, under each of the two methods. a) LCNRV applied item-by-item (required 1) General Journal Account Titles and Explanation Date Debit Credit b. LCNRV applied assuming A & B are related and C & D are related (required 2) General Journal Date Account Titles and Explanation Debit Credit b. LCNRV applied assuming A & B are related and C & D are related (required 2) General Journal Date Account Titles and Explanation Debit Credit At the end of 2016, ABC Industries has four inventory items, two of which management believes should be written down. The cost and estimated NRVS per unit of the items are as follows: Quantity 200 520 NRV $ 320 180 Cost Item A $ 340 Item B 160 Item C 300 280 200 Item D 400 200 240 Required: 1. Determine the amount by which the inventory should be written down if lower-of-cost-or- NRV valuation is applied item-by-item. Prepare the journal entry to record the writedown. General Journal Date Account Titles and Explanation Debit Credit 2. Assume items A and B are related, while items C and D are related. Determine the inventory writedown if lower-of-cost-or-NRV, valuation is applied by category. Prepare the journal entry to establish an inventory allowance. General Journal Date Account Titles and Explanation Debit Credit 3. Suppose that in 2016, the NRV of item A rises to $360 by the end of the year. Prepare journal entries to record the recovery in value, if feasible, under each of the two methods. a) LCNRV applied item-by-item (required 1) General Journal Account Titles and Explanation Date Debit Credit b. LCNRV applied assuming A & B are related and C & D are related (required 2) General Journal Date Account Titles and Explanation Debit Credit b. LCNRV applied assuming A & B are related and C & D are related (required 2) General Journal Date Account Titles and Explanation Debit Credit At the end of 2016, ABC Industries has four inventory items, two of which management believes should be written down. The cost and estimated NRVS per unit of the items are as follows: Quantity 200 520 NRV $ 320 180 Cost Item A $ 340 Item B 160 Item C 300 280 200 Item D 400 200 240 Required: 1. Determine the amount by which the inventory should be written down if lower-of-cost-or- NRV valuation is applied item-by-item. Prepare the journal entry to record the writedown. General Journal Date Account Titles and Explanation Debit Credit 2. Assume items A and B are related, while items C and D are related. Determine the inventory writedown if lower-of-cost-or-NRV, valuation is applied by category. Prepare the journal entry to establish an inventory allowance. General Journal Date Account Titles and Explanation Debit Credit 3. Suppose that in 2016, the NRV of item A rises to $360 by the end of the year. Prepare journal entries to record the recovery in value, if feasible, under each of the two methods. a) LCNRV applied item-by-item (required 1) General Journal Account Titles and Explanation Date Debit Credit b. LCNRV applied assuming A & B are related and C & D are related (required 2) General Journal Date Account Titles and Explanation Debit Credit b. LCNRV applied assuming A & B are related and C & D are related (required 2) General Journal Date Account Titles and Explanation Debit Credit

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Question 2 1 Cort 68000 83200 Ceat pu uit 200 520 800 340 160 8400... View the full answer