The Inventory Record of Palm Springs Plc Shows 1000 Surf

Multiple Choice

The inventory record of Palm Springs Plc shows 1000 surf boards on stock that cost €50 each.During the last stocktake,the accountant noted 100 old style surf boards with net realisable amount of €15.What journal entry would be required of Palm Springs to comply with IAS 2?

A) $$\begin{array} { | c | l | l | l | } \hline \mathrm { Dr } & \text { Ending inventory } & 1500 & \\\hline \mathrm { Cr } & \text { Cost of sales } & & 1500 \\\hline\end{array}$$
B) $$\begin{array} { | c | l | l | l | } \hline \mathrm { Dr } & \text { Ending inventory } & 1500 & \\\hline \mathrm { Cr } & \text { Asset revaluation reserve } & & 1500 \\\hline\end{array}$$
C) $$\begin{array} { | c | l | l | l | } \hline \mathrm { Dr } & \text { Impairment loss } & 1500 & \\\hline \mathrm { Cr } & \text { Ending inventory } & & 1500 \\\hline\end{array}$$
D) $$\begin{array} { | c | l | l | l | } \hline \mathrm { Dr } & \text { Impairment loss } & 1500 & \\\hline \mathrm { Cr } & \text { Asset revaluation reserve } & & 1500 \\\hline\end{array}$$