1. Blue Jay Inc. had the following items in inventory as at November 30, 2020:...
50.1K
Verified Solution
Link Copied!
Question
Accounting
1. Blue Jay Inc. had the following items in inventory as at November 30, 2020: ks Net Realizable Item No. Quantity Unit Cost Value Per Unit A2 B8 D4 85 100 120 90 $ $ $ $ 2.40 2.45 7.45 7.50 $ $ $ $ 4.45 2.35 8.80 6.50 Assume that none of the inventory items can be grouped together for accounting purposes. Required: (a) Prepare the year-end adjusting entry to adjust inventory to the lower of cost or net realizable value on an item-by-item basis using the direct method. (b) Prepare the year-end adjusting entry to adjust inventory to the lower of cost or net realizable value on an item-by-item basis using the indirect method. Assume that the Allowance to Reduce Inventory to NRV account had a balance at November 30, 2019 of $150
Answer & Explanation
Solved by verified expert
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Zin AI - Your personal assistant for all your inquiries!
