XY store has two inventories: A and B. The current LCNRV allowance has a balance of $2,000.

For inventory A: the cost of ending inventory is $5,000, NRV is $4,000.

For inventory B: On January 1, XY store had inventory B of $48,000. January inventory B purchases were $46,000 and January B sales were $90,000. On February 1 a fire destroyed most of the inventory B. The rate of gross profit was 25% of the cost. Inventory B with a cost of $6,000 remained undamaged after the fire, and the estimated net realizable value of the remaining inventory B is $4,000. What is XY’s inventory loss?

Answer rating: 100% (QA)

Inventory A Cost 5000 NRV 4000 Inventory A valuation is 4000 ... View the full answer