0 Febbinia. Durgna. Pitalowa OM BU 33% 217 Ake fC) ROBLEM 4.3] = 8 oy la/i/aoas (coGs) _ oe. Noes (4 780,000- $ 712,000) # c Allonance to reduce inventory 40 NRV - ; as la /ai/aoay ; WW COGS [05,000 - 830,000 )- $ 68,000] 5 by (2/31/2023 Coss Method) To write down ventory 1 net realizable value * 68,000_Add collections, u/l~ 4 fis (22 CE 12,950 ~ 950) Total Less receiable, 3/31 (aa Total sates \/0/= 4 fg (22 Less oross progit (UE 7. XE let 1,000) Estimated merchandise investory 55: Sale o¢ salvaged aventory Jeventory gure Loss es wutextion OF Gross Progit Ratio | —__Net sales, 2020 Sn ran seo Net sales, 2021 ae Total net sales Beginning «aventory Net purchases, 2020 Net purchases, 2021 Total Less vending ivan ont caaeana Gross propit eae [> pRowtem 9.9) ee a ~laventory (beginning ) Purchases Purchase Returns Freight in — Totals ~ Marnups Marvup Cancellations i dengan CamScanner__Ending ventory at Loney eee ry ee) ea is ___LTheet losses (hopligting or pulgerage). 2. Spoilage or breauage above norma 3. Diggerences ta cost /retail ratio for purchases ducing beginning inventory ,and ening inventory. 4, Markugs on goods available for sale inconscsfent between cost OF Bae: gods yeld and ending inventory _ ys eeaaisaas “Gg. A wide variety of merchandise with varying cost/retarl ratios. ~G. Incorrect ceporting of m marudewns, additional maruups, oF reancellations. should be reported at net realizable value consistent ule since net realizable value & b low orginal cos to report the inventory in the Statement id hove tower 00 ° effect on ct on ending ia used the OUEFAGE ing Dipindai dengan CamScannereee] - =e. deaueiend el ey nd % es fequire that when @ contracted price 1s 17 EXE marve ee Market, as it ts inthis case (maruet Is $ $000,000 0nd the © Price is eae eS ae e3 a cre ono. 000 Jana (tts expected thet losses will occur * ~ chase \s effected, loses should be recogni zed inthe period ducing _ Which such decl jd be unethica rue bss 1s expected to Sin marnet to ignore recognition of the loss now i¢ alo: when the purchase is affected: loss 1s material, re harmed ce essronal 7 of the loss . Herman's position as an: accounting PF also is affected if he accepts a ginancal report he Knows Niolete $s accounting Standards . = aderance o¢ the evidence points toaloss wher the purchase ©) te the rere 1s aggected, the controller should recognize the amount oF the toss othe aay period which the price decline occurs. in this ease the loss is measure! “ax § 1,000,000 and recorded as follows : wae — [funealzed Holding Gain or Less - Income $1,060, 000 es —__ Porchose Commitment Uability $ 1,000,000 Herman shovld insist on statement preparation in accordance with ——— accounting standards. \f hands wilinot accept Herman & position Herman will have 40 cansider alternative courses of action rae a “contacting higher ‘ateprophet oud anest Wea uch as — PF at prophet and 05 each course of action ane assess the consequences Dipindai dengan CamScanner