Lower-Of-Cost-Or-Market
Elite Systems Sells a Single Product $$\begin{array} { | l | c | } \hline \text { Date } & \text { General Journal } \\\hline 20 & \\\hline\end{array}$$

question 80

Essay

Lower-of-cost-or-market
Elite Systems sells a single product. At December 31, the company's perpetual inventory records indicate 2,500 units on hand with a total cost (FIFO basis) of $155,000. The replacement cost of this product at this date is $35 per unit.
Prepare journal entries to record (a) the write-down of the inventory to the lower-of-cost-or-market value at December 31, and (b) the cash sale of 100 units on January 4 at a retail price of $50 per unit.
(a) Dec. 31
(b) Jan. 4
$$\begin{array} { | l | c | } \hline \text { Date } & \text { General Journal } \\\hline 20 & \\\hline\end{array}$$

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Definitions:

Revision Time

A period allocated for reviewing and making changes or corrections to a document or project.

Group Norms

Shared guidelines or rules of conduct that dictate expected behaviors within a group.

Group Cohesion

The bonds that link members of a group together, promoting unity and ensuring members work effectively towards common goals.

Interpersonal Leaders

Individuals who guide and influence others through direct personal relationships, often characterized by their ability to effectively communicate, motivate, and resolve conflicts among team members.