Inventory That Originally Cost $10,000 Was Written Down to Its

question 3

Multiple Choice

Inventory that originally cost $10,000 was written down to its net realizable value of $8,500 at the end of 2014.At the end of 2015, the net realizable value is determined to be $10,500.At what amount should the inventory be reported on the December 31, 2015 statement of financial position?

• A)$10,500
• B)$10,000
• C)$9,500
• D)$8,500

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Definitions:

Demand Instrument

A financial document that requires the payment of money immediately or on demand.

Time Of Payment

The specific period or date by which payment for goods or services received must be made.

Voidable Instrument

A financial document or contract that is valid but may be annulled by one or more of the parties to the contract.

IOU Instrument

A document acknowledging a debt or an obligation to pay a specified sum of money to another party.