Question: Problem 4 - 2 . On December 3 1 , 2 0 1 8 , Jewels Inc. took an inventory impairment of $ 2 0

Problem 4-2.
On December 31,2018, Jewels Inc. took an inventory impairment of $20,801. They included the impairment in the Cost of Goods Sold, which was $2,852,714.
Suppose they sell this inventory in 2019. How will this impairment impact the COGS in 2019?
If they did NOT impair the inventory, what would be the COGS in 2018? Would the ending balance of inventory be higher, lower, or the same in 2018?

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