Problem
Ultimate Cookies sells various pastries for parties and events offered in two packages. The cost and NRV of each individual type of product/package in the business's ending inventory as at December 31, 2022, are shown below. What is the journal entry to adjust merchandise inventory to LCNRV at the individual level?
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|
Cost
|
NRV
|
|
Package 1
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$5,000
|
$3,500
|
|
Package 2
|
$7,500
|
$8,500
|
|
Total
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$12,500
|
12,000
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