On January 1, 2020, the general ledger of Redbud Company includes the following account balances:

Accounts	Debit			Credit
Cash	$	25,100
Accounts Receivable		44,500
Inventory		46,000
Land		85,600
Allowance for Uncollectible Accounts					3,500
Accounts Payable					27,200
Notes Payable (9%, due in 3 years)					46,000
Common Stock					72,000
Retained Earnings					52,500
Totals	$	201,200		$	201,200

The $46,000 beginning balance of inventory consists of 460 units, each costing $100. During January 2020, Redbud had the following inventory transactions:

January 3	Purchase 1,450 units for $158,050 on account ($109 each).
January 8	Purchase 1,550 units for $176,700 on account ($114 each).
January 12	Purchase 1,650 units for $196,350 on account ($119 each).
January 15	Return 180 of the units purchased on January 12 because of defects.
January 19	Sell 4,800 units on account for $720,000. The cost of the units sold is determined using a FIFO perpetual inventory system.
January 22	Receive $705,000 from customers on accounts receivable.
January 24	Pay $500,000 to inventory suppliers on accounts payable.
January 27	Write off accounts receivable as uncollectible, $2,500.
January 31	Pay cash for salaries during January, $135,000.

The following information is available on January 31, 2020.

1. At the end of January, the estimated selling price of the remaining units of inventory is only $100 each. [Hint: find the number of units left by adding units in beginning inventory to the number of units purchased and subtracting the number of units sold.]
2. The company estimated future uncollectible accounts by preparing an aging schedule. $5,600 of accounts receivable on January 31 are past due, and 35% of these accounts are estimated to be uncollectible. The rest of the accounts receivable are not past due, and 5% of these accounts are estimated to be uncollectible. [Hint: Find the total accounts receivable on January 31 by looking in the general ledger.)
3. Accrued interest expense on notes payable for January. Interest is expected to be paid each December 31.
4. Accrued income taxes at the end of January are $13,900. Taxes will be paid in March, 2020.

I need help with the question below

what is the adjusting entry, if any, to adjust inventory to lower of cost or NRV?

Answer rating: 100% (QA)

Adjusting entries Date Account 31Jan Loss on Inventory Write DownCost of ... View the full answer