Chat with us, powered by LiveChat Write-Down of Obsolete InventoryAs a newly hired s - Writemia

Write-Down of Obsolete InventoryAs a newly hired s

Write-Down of Obsolete InventoryAs a newly hired staff accountant, you are assigned the responsibility of physically countinginventory at the end of the year. The inventory count proceeds in a timely fashion. The inventoryis outdated, however. You suggest that the inventory cannot be sold for the cost at which it is carriedand that the inventory should be written down to a much lower level. The controller repliesthat experience has taught her how the market changes and she knows that the units in the warehousewill be more marketable again. The company plans to keep the goods until they are backin style.Required1. What effect will writing off the inventory have on the current year’s income?2. What effect does not writing off the inventory have on the year-end balance sheet?3. What factors should you consider in deciding whether to persist in your argument that theinventory should be written down?4. If you fail to write down the inventory, do outside readers of the statements have reliableinformation? Explain your answer.

Do you need an answer to this or any other questions?

About Writemia

We are a professional paper writing website. If you have searched a question and bumped into our website just know you are in the right place to get help in your coursework. We offer HIGH QUALITY & PLAGIARISM FREE Papers.

How It Works

To make an Order you only need to click on “Place Order” and we will direct you to our Order Page. Fill Our Order Form with all your assignment instructions. Select your deadline and pay for your paper. You will get it few hours before your set deadline.

Are there Discounts?

All new clients are eligible for 20% off in their first Order. Our payment method is safe and secure.

Hire a tutor today CLICK HERE to make your first order