Required information

M$7-15($Static$)$ Preparing the Journal Entry to Record Lower of Cost or Market$/$Net Realizable Value $($LCM or NRV$)$ Adjustment $[$LO $7-4]$

$[$The following information applies to the questions displayed below.$]$

During fiscal $2021,$ Zillow Group Incoporated wrote down its homes in inventory by approximately $$407,900,000$ because its cost exceeded its net realizable value.

M$7-15($Static$)$ Part $2$

Required:

$2.$ Prepare the journal entry that the company would have made to record the above adjustment.

Note: If no entry is required for a transaction or event, select $"$No Journal Entry Required" in the first account field.

Journal entry worksheet

A

Record the inventory write down of $$407,900,000$ to LCM.

Note: Enter debits before credits.

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