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Your client has introduced a significant upgrade of its products and has asked you to perform an obsolescence review of a parts inventory.

You select a monetary unit sample.

The sample disclosed items for which write-downs to lower of cost or market is appropriate.

The estimated (projected) write-down is $320,000. The 90%two-sided confidence interval on that estimate is:

lower confidence limit [LCY], $100,000; upper confidence limit [UCL, $650,000.

The maximum tolerable misstatement is $400,000 and the planned confidence level is 95% (2-sided).

1. Present the results graphically, with numbers.
2. Describe those results in words [Le., verbally].
3. Present another graph giving the permissible range for an adjusting journal entry AJE, with numbers.
4. Give an acceptable adjusting journal entry [DRand CR] in good accounting form

Your client has introduced a significant upgrade of its products and has asked you to perform an obsoleseence review of a parts inventory. Wou select a monetary unit sample. The sample disclosed items for which write-downs to lower of cost or market is appropriate. The est inated (projected) write-down is $320,000. The 90% two-sided confidence interval on that est imate is: lower confidence limit [LC1], \$100,000; upper confidence limit [UCL], $650,000. The maximum tolerable misstatement is $400,000 and the planned confidence level is 95%(2sixled). a. Present the results graphically, with numbers. b. Describe those results in words [i,e., verbally]. c. Present another graph giving the permissible range for an adjusting journal entry [NI], with numbers. d. Give an acceptable adjust ing journal entry [DR and CR] in good account ing form. Your client has introduced a significant upgrade of its products and has asked you to perform an obsoleseence review of a parts inventory. Wou select a monetary unit sample. The sample disclosed items for which write-downs to lower of cost or market is appropriate. The est inated (projected) write-down is $320,000. The 90% two-sided confidence interval on that est imate is: lower confidence limit [LC1], \$100,000; upper confidence limit [UCL], $650,000. The maximum tolerable misstatement is $400,000 and the planned confidence level is 95%(2sixled). a. Present the results graphically, with numbers. b. Describe those results in words [i,e., verbally]. c. Present another graph giving the permissible range for an adjusting journal entry [NI], with numbers. d. Give an acceptable adjust ing journal entry [DR and CR] in good account ing form

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