Sunny Pond uses the lower-of-cost-or-market rule to report inventory on the basis of inventory as a whole.   The inventory balance is $$\displaystyle {17000}$ and the current market value is $$\displaystyle {16000}$.

 

a) What amount should we report for inventory on the balance sheet?

b)What adjusting journal entry would be required, if any, to show this change in inventory? If no entry is required, choose "no entry required" on the first line, and fill in 0 for debit and credit.

Account	Debit	Credit
Select an answer Inventory Allowance for Doubtful Accounts Gain on inventory Loss on inventory Accounts Receivable No entry required Cost of goods sold Accounts Payable	$	$
Select an answer Accounts Receivable Cost of goods sold Accounts Payable Gain on inventory No entry required Loss on inventory Allowance for Doubtful Accounts Inventory	$	$