PRESENTATION & ANALYSIS OF INVENTORY ?Note: I have completed part a), ?please so

Question

PRESENTATION & ANALYSIS OF INVENTORY

?Note: I have completed part a),

?please solve part b)

part b) If Flint Music has the inventory of $59,300? on December 31, 2018, with a net realizable value of $59,700, what amount should it report its inventory at on that date?

Inventory ____________$

a)

Brief Exercise 6-11 (Part Level Submission The cost of Flint Music Inc.'s inventory at December 31, 2018, is 59,300. Its net realizable value on the same date is $56,800. ? (a) Your answer is correct. Prepare the adjusting journal entry required, if any, to record the decline in value of the inventory. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) Account Titles and Explanation Debit Credit Cost of Goods Sold 2500 Inventory 2500

Explanation / Answer

b) The inventory should be reported at the lower of cost or net realizable value whichever is less. Hence, inventory = $59,300.

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