the journal entry to write down inventory under the lower of cost or net realizable value rule results in a debit to cost of goods sold and credit to inventory true

E8-6 8-2, 8-3 Recording Depreciation and Repairs (Straight-Line Depreciation) Manrow Growers. Ine.. owns equipment for sowing and harvesting its organic fruit nuts that are sold to local restaurants and grocery stores. At the beginning of 2019 company showed the following balances: fruit, vegetables, and tree 2019. an asset account for the $350,000 Equipment Accumulated depreciation through 2018 165,000 During 2019, the following expenditures were incurred for the equipment: Major overhaul of the equipment on January 1, 2019, that improved efficiency Routine maintenance and repairs on the equipment $42.000 5,000 The equipment is being depreciated on a straight-line basis over an estimated life of eight years with $20,000 estimated residual value. The annual accounting period ends on December 31. Required: 1. Give the adjusting entry that was made at the end of 2018 for depreciation on the equipment. 2. Starting at the beginning of 2019, what is the remaining estimated life? 3. Give the journal entries to record the two expenditures during 2019