Problem 6-4A Report inventory using lower of cost and net realizable value (L06-6) [The following information applies to the questions displayed below.) A local Chevrolet dealership carries the following types of vehicles: Inventory Items Vans Trucks 2-door sedans 4-door sedans Sports cars SUV Quantity 2 5 1 6 Unit Cost $23,000 17,200 12,200 16,200 33,000 28,400 Unit NRV $21,000 16,200 14,200 19.200 36,000 24,000 7 Because of recent increases in gasoline prices, the car dealership has noticed a reduced demand for its SUVs, vans, and trucks. Problem 6-4A Part 2 2. Determine whether each inventory item would be reported at cost or net realizable value (NRV). Enter the amount of either the Unit Cost or Unit NRV in the "Lower of Cost and NRV per unit" column and then multiply this amount by the quantity of each inventory item and enter it in the Total column. Lower of Cost Cost or NRV and NRV per unit Total Inventory Items Vans Navt of 4 2. Determine whether each inventory item would be reported at cost or net realizable value (NRV). Enter the amount of either the Unit Cost or Unit NRV in the "Lower of Cost and NRV per unit column and then multiply this amount by the quantity of each inventory item and enter it in the Total column. Inventory Items Lower of Cost Cost or NRV and NRV per unit Total ok Y Vans Trucks 2-door sedans 4-door sedans Sports cars SUVS Total ences $ 0 Required information Problem 6-4A Report inventory using lower of cost and net realizable value (L06-6) {The following information applies to the questions displayed below) A local Chevrolet dealership carries the following types of vehicles: Inventory Items Vans Trucks 2-door sedans 4-door sedan Sports cars SUVS Quantity 2 5 1 Unit Cost $23,000 17,200 12,200 16,200 33,000 28,400 Unit NRV $21,000 16,200 14,200 19,200 36,000 24,000 2 7 Because of recent increases in gasoline prices, the car dealership has noticed a reduced demand for its SUVs, vans, and trucks. Problem 6-4A Part 3 3. Prepare necessary entry to write down inventory from cost to net realizable value. (if no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) View transaction list [The following information applies to the questions displayed below.) A local Chevrolet dealership carries the following types of vehicles: Quantity 4 Inventory Items Vans Trucks 2-door sedans 4-door sedans Sports cars SUVS 5 1 Unit Cost $23,000 17,200 12,200 16, 200 33,000 28,400 Unit NRV $21,000 16,200 14,200 19,200 36,000 24,000 7 Because of recent increases in gasoline prices, the car dealership has noticed a reduced demand for its SUVs, vans, and trucks. Problem 6-4A Part 4 4. The write-down of inventory from cost to net realizable value reduces total assets and increases total expenses, leading to lower net income and lower retained earnings. True or False True False