Ep 5-3 | Accounting homework help

EP 5-3
Auditing an Accounting Estimate. LO5 Suppose management estimated the lower-of-cost- and net realizable value of some obsolete inventory at $99,000, and wrote it down from $120,000, recognizing a loss of $21,000. The auditors obtained the following information: the inventory in question could be sold for an amount between $78,000 and $92,000. The costs of advertising and shipping could range from $5,000 to $7,000.


1.Would you propose an audit adjustment to the management estimate? Write the appropriate accounting entry.
2.If management’s estimate of inventory market (lower than cost) had been $80,000, would you propose an audit adjustment? Write the appropriate accounting entry.

Calculate your order
Pages (275 words)
Standard price: $0.00
Client Reviews
Our Guarantees
100% Confidentiality
Information about customers is confidential and never disclosed to third parties.
100% Originality
The main foundation of any academic writing company is offering 100% originality in their orders. Make your order today and benefit from anti-plagiarized papers.
Customer Support 24/7
You can rest assured that our customer support team is consistently available to solve any difficulties and take your orders 24/7.
Money Back
If you're confident that a writer didn't follow your order details, ask for a refund.

Calculate the price of your order

You will get a personal manager and a discount.
We'll send you the first draft for approval by at
Total price:
Power up Your Academic Success with the
Team of Professionals. We’ve Got Your Back.
Power up Your Study Success with Experts We’ve Got Your Back.