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The following table details ABC Corps inventory balance at cost, as measured by FIFO, and...

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Accounting

The following table details ABC Corps inventory balance at cost, as measured by FIFO, and its net realizable value.

  • Inventory at cost, 12/31/Y1: $116,000
  • Inventory at NRV, 12/31/Y1: $114,400
  • Inventory at cost, 12/31/Y2: $128,700
  • Inventory at NRV, 12/31/Y2: $125,200
  • Inventory at cost, 12/31/Y3: $153,000
  • Inventory at NRV, 12/31/Y3: $164,000

Based on this data, the entry to adjust ABC Corps Account to Reduce Inventory to NRV account at 12/31/Y3 would be:

The following table details ABC Corps inventory balance at cost, as measured by FIFO, and its net realizable value.

  • Inventory at cost, 12/31/Y1: $116,000
  • Inventory at NRV, 12/31/Y1: $114,400
  • Inventory at cost, 12/31/Y2: $128,700
  • Inventory at NRV, 12/31/Y2: $125,200
  • Inventory at cost, 12/31/Y3: $153,000
  • Inventory at NRV, 12/31/Y3: $164,000

Based on this data, the entry to adjust ABC Corps Account to Reduce Inventory to NRV account at 12/31/Y3 would be:

$12,900 gain

$1,900 gain

$11,000 gain

$1,900 loss

$1,600 loss

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