Lower-Of-Cost-Or-Market Elite Systems Sells a Single Product.At December 31,the Company's Perpetual

Essay

Lower-of-cost-or-market
Elite Systems sells a single product.At December 31,the company's perpetual inventory records indicate 2,500 units on hand with a total cost (FIFO basis)of $155,000.The replacement cost of this product at this date is $35 per unit.
Prepare journal entries to record (a)the write-down of the inventory to the lower-of-cost-or-market value at December 31,and (b)the cash sale of 100 units on January 4 at a retail price of $50 per unit. (a)Dec.31
(b)Jan.4