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Electronics, Inc. is a high-volume, wholesale merchandising company. Most of its inventory turns over...

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Accounting

Electronics, Inc. is a high-volume, wholesale merchandising company.
Most of its inventory turns over four or five times a year. The
company has had 50 units of a particular brand of computers on hand
for over a year. These computers have not sold and probably will not
sell unless they are discounted 60 to 70%. The accountant is carrying
them on the books at cost and intends to recognize the loss when
they are sold. This way, she can avoid a significant write-down in
inventory on the current year's financial statements.
Is the accountant correct in her treatment of the inventory? Why
or why not?
If the computers cost $1,000 each and their market value is 40%
of their cost, journalize the entry necessary for the write-down.
Make a list of reasons why inventories of electronic equipment
might have to be written down.
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