Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
Example of net realizable value?
To exemplify a necessary write-down in the cost of inventory presume that an automobile dealer has a demonstrator on hand. The dealer obtained the auto at a cost of USD 18000. The auto had an actual selling price of USD 19600. Ever since the dealer used the auto as a demonstrator and the new models are coming in the auto now has an estimated selling price of only USD 18100. But the dealer is able to get the USD 18100 only if the demonstrator receives some scheduled maintenance including a tune-up and some paint damage repairs. This work in addition to the sales commission cost USD 300. The net realizable value of the demonstrator after that is USD 17800 (selling price of USD 18100 less costs of USD 300). For inventory purposes the required journal entry is as
Loss Due to the Decline in Market Value of Inventory (-SE) 200
Merchandise Inventory (-A) 200
To write down inventory to net realizable value ($18,000 -$17,800) This entry treats the USD 200 inventory turn down as a loss in the period in which the decline in utility occurred. Such an entry is essential only when the net realizable value is less than cost. If a net realizable value decline but still exceeds cost the dealer would continue to carry the item at cost.
I''m trying to figure out how do do a journal entry. The question reads...a company purchased land worth $49,000 for an office by paying $6,300 in cash and signing a long term note
What does a business owner do when the cash balance approaches zero and there are bills to be paid? (Hint: look at the financing activities of the Cash Flow Statement and then lo
Explain Carriage inwards.
got 1 question for accounting for business its a 25 min question? can you help in this?
What is procedure for testing after implementation as functional consultant? Ans) Testing involves a step by step check of several transactions configured in the SAP system.
Hi i just need the solution of case study.
current and non current liabilties
format
Q. What do you mean by Liabilities? Liabilities are the debts outstanding by a business. Usually a business should pay its debts by certain dates. A business acquires many of i
Hi I need a quote for an assingment. How do I submit it to you?
Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!
whatsapp: +1-415-670-9521
Phone: +1-415-670-9521
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd