Teeshirts inc. paid 6,000 for shirts on August 14, 2020. By its financial year-end on...
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Teeshirts inc. paid 6,000 for shirts on August 14, 2020. By its financial year-end on November 30th, the company had sold shirts worth 5,400 for a total of net value of 11,350. The remaining inventory was slightly damaged and will only be able to be sold for a price lower than its original acquisition cost, i.e. the estimated value at which the remaining shirt will be sellable is 500.
The journal entry that is necessary on November 30, 2020 in order to report the correct value of inventory in the financial statements, is
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