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please answer this ques:
-while preparing the year end financial statements ,the accountant of Y is informed that items of inventory which cost $ 10,000 have been discovered in the inventory room. They have been omitted from the company’s records. One of these inventory items has been damaged. It cost $ 7,000 and could be sold for $ 6,000 , but only after $ 500 has been spent repairing it.How must should Y increase her inventory value by to record these items?
so items worth 10000 have been omitted from the records.
which inludes an item of 7000 at cost.
But inventory should be valued at lower of cost and NRV
Cost : 7000
NRV: Selling Price less cost to sell ( 6000-500) = 5500so the new value of invetory which cost 7000 is now 5500
and balnce of 1000-7000= 3000
so 3000+5500 = 8500, inventory should be increased by 8500. Im not sure if am correct , pls check with other forum friends
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