The cost of Piper Music Inc.'s inventory at December 31, 2018, is $54,700. Its net realizable value

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The cost of Piper Music Inc.'s inventory at December 31, 2018, is $54,700. Its net realizable value on the same date is $52,500.

(a) Prepare the adjusting journal entry required, if any, to record the decline in value of the inventory.

(b) If Piper Music has the same inventory on hand at December 31, 2018, with a net realizable value of $55,000, what amount should it report its inventory at on that date?

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Financial Accounting Tools for Business Decision Making

ISBN: 978-1119368458

7th Canadian edition

Authors: Paul D. Kimmel, Jerry J. Weygandt, Donald E. Kieso, Barbara Trenholm, Wayne Irvine

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Question Posted: Jun 15, 2017 09:10 AM

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The cost of Piper Music Inc.'s inventory at December 31, 2018, is $54,700. Its net realizable value

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