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Help Required information (The following information applies to the questions displayed below.) A local Chevrolet dealership carries the following types of vehicles: Unit Unit Inventory Items Quantity Cost NRV $20,500 16,100 14,100 19,100 35,500 23,500 Vans $22,500 17,100 12,100 16,100 32,500 28,200 Trucks 2-door sedans 4-door sedans Sports cars SUVS Because of recent increases in gasoline prices, the car dealership has noticed a reduced demand for its SUVS, vans, and trucks. Required: 1. Compute the total cost of the entire inventory. Total cost m Fall 2019 Saved Help Sa (The following information applies to the questions displayed below.) A local Chevrolet dealership carries the following types of vehicles: Unit Cost Unit Inventory Items Quantity NRV Vans $22,500 17,10 12,100 16,100 32,500 $20,500 16,100 14,100 Trucks 2-door sedans 4-door sedans 19,100 35,500 23,500 Sports cars SUVS 6. 28,200 Because of recent increases in gasoline prices, the car dealership has noticed a reduced demand for its SUVS, vans, and trucks. 2. Determine whether each inventory item would be reported at cost or net realizable value (NRV). Enter the Cost per Unit for the "Lower of Cost and net realizable value" and then multiply the quantity of each inventory item by the appropriate cost or NRV amount and enter it in the Total column. Lower of Cost and NRV per unit Total Inventory Items Cost or NRV Vans Trucks 2-door sedans 4-door sedans Sports cars SUVS $4 Total Sports cars SUVS 32,500 28,200 35,500 23,500 Because of recent increases in gasoline prices, the car dealership has noticed a reduced demand for Its SUVS, vans, and trucks. 3. Prepare necessary entry to write down inventory from cost to net realizable value. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) View transaction list Journal entry worksheet Record the adjustment for inventory. Note: Enter debits before credits. Credit Debit General Journal Transaction View general journal Clear entry Record entry Help Save & Exit Required information (The following information applies to the questions displayed below.) A local Chevrolet dealership carries the following types of vehicles: Unit Unit Inventory Items Quantity NRV $20,500 16,100 14,100 19,100 35,500 23,500 t $22,500 10 , 12,100 16,100 Vans Trucks 2-door sedans 4-door sedans Sports cars SUVS 32,500 28,200 Because of recent increases in gasoline prices, the car dealership has noticed a reduced demand for its SUVS, vans, and trucks. 4. The write-down of inventory from cost to net realizable value reduces total assets and increases total expenses, leading to lower net income and lower retained earnings. True or False False True

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