Lower-Of-Cost-Or-Market Elite Systems Sells a Single Product.At December 31,the Company's Perpetual

question 108

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

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Definitions:

Virtual Reality

A simulated digital environment that can be interacted with in a seemingly real or physical way, often through specialized equipment.

X-Ray Images

Radiographic images used in medicine to view the internal structure of the body.

Camera Photographic Film

Light-sensitive material used in analog cameras to capture images through a chemical reaction triggered by exposing the film to light.

System Software

The type of software designed to provide a platform for other software. Examples include operating systems and utility programs that manage computer resources at a low level.