Klassen Furniture Inc. paid $3,000 for inventory on September 26. By December 31, Klassen determined that the net realizable value of this inventory is only $2,000. The following journal only was used to write down the inventory: Dr. Cost of goods sold 1,000 Cr. Inventory 1,000 Assume that Klassen's inventory described above was still on hand at the end of the next period and that the net realizable value had increased to $3,200. The journal entry to reverse the write-down is

Klassen Furniture Inc. paid $3,000 for inventory on September 26. By December 31, Klassen determined that the net realizable value of this inventory is only $2,000. The following journal only was used to write down the inventory: Dr. Cost of goods sold 1,000 Cr. Inventory 1,000 Assume that Klassen's inventory described above was still on hand at the end of the next period and that the net realizable value had increased to $3,200. The journal entry to reverse the write-down is

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter7: Inventories: Cost Measurement And Flow Assumptions

Section: Chapter Questions

Problem 11RE: Jessie Stores uses the periodic system of calculating inventory. The following information is...

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