Mini Co.s inventory in 2021 consists of two line items: Product A 1000 pieces....
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Accounting
Mini Co.s inventory in 2021 consists of two line items:
Product A 1000 pieces. Purchased all 1000 pieces on June 30th 2021 paid for using a 2-year non-interest bearing note with the face amount of $10,000. The market rate for similar notes is 5%.
Product B 100 pieces. Purchased on Sept 30th paid for all 100 pieces with $2,000 cash.
On Dec 31st, the selling costs for both product A and product B are $2 per piece. Product A has an estimated selling price of $9.80 each while product B has an estimated selling price of $19 each.
Mini Co. accounts for its inventory using LV-NRV at the individual product level.
What is the amount of inventory reported on its Dec 31st 2021 Balance sheet?
Provide the journal entries for the write-down of inventory (if necessary).
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