A local Chevrolet dealership carries the following types of vehicles: Inventory ItemsQuantityUnit CostUnit NRVVans3$18,000$16,000Trucks616,20015,2002-door sedans211,20013,2004-door sedans715,20018,200Sports cars328,00031,000SUVs526,40019,000 Because of recent increases in gasoline prices, the car dealership has noticed a reduced demand for its SUVs, vans, and trucks.Required:4. Determine the financial statement effects of using lower of cost and net realizable value to report inventory. (Make sure to enter amounts leading to account reduction with a minus sign.)I need assistance solving Requirement 4 (specifically, the four boxes with a red 'X', which are currently not correct). Requirements 1 through 3 have already been answered correctly -- a screenshot is attached to show those values. For Requirement 4, the text presets available to choose from are as follow:No Journal Entry RequiredAccounts PayableAccounts ReceivableAdvertising ExpenseAllowance for Uncollectible AccountsBuildingsCashCommon StockCost of Goods SoldDeferred RevenueDelivery ExpenseEntertainment ExpenseEquipmentFreight-InGainIncome Tax ExpenseInsurance ExpenseInterest ExpenseInterest PayableInterest ReceivableInterest RevenueInventoryLandLegal Fees ExpenseNotes PayableNotes ReceivablePostage ExpensePrepaid AdvertisingPrepaid InsurancePrepaid RentPurchase DiscountsPurchase ReturnsPurchasesRent ExpenseRepairs and Maintenance ExpenseRetained EarningsSalaries ExpenseSalaries PayableSales AllowancesSales DiscountsSales ReturnsSales RevenueService Fee ExpenseService RevenueSuppliesSupplies ExpenseUtilities ExpenseUtilities Payable Required 1InventoryItemsComplete this question by entering your answers in the tabs below.Required 1 Required 2Total costComplete this question by entering your answers in the tabs below.TotalCompute the total cost of the entire inventory.VansTrucks2-door sedans4-door sedansSports carsSUVSRequired 2Cost orNRVDetermine whether each inventory item would be reported at cost or net realizable value (NRV). Enter the amount of eitherthe Unit Cost or Unit NRV in the "Lower of Cost and NRV per unit" column and then multiply this amount by the quantity ofeach inventory item and enter it in the Total column.NRVNRVCostCostCostNRV✓✓✓$ 496,000✓✓✓Required 3 Required 4Lower ofCost andNRV perunit16,000 $15,200 ✓11,200✔15,200✔28,000✔19,000✔Total48,000✔91,200✔22,400✔106,400✔84,00095.000447,000Required 31Transaction1Required 3Record any necessary adjusting entry to write down inventory from cost to net realizable value. (If no entry is required for atransaction/event, select "No Journal Entry Required" in the first account field.)Answer is not complete.Cost of Goods SoldInventoryRequired 4General Journal✓✓Debit49,000✔CreditPICCOLLAGE Complete this question by entering your answers in the tabs below.Required 1 Required 2 Required 3RevenuesDetermine the financial statement effects of using lower of cost and net realizable value to report inventory. (Make sure to enter amounts leading to account reductionwith a minus sign.)49,000 InventoryAssetsRequired 4(49,000) Inventory Answer is complete but not entirely correct.XIncome Statement:Expenses49,000 Cost of Goods SoldBalance Sheet:49,0003Net Income(49,000)Stockholders'Equity(49,000)

Question

A local Chevrolet dealership carries the following types of vehicles: Inventory ItemsQuantityUnit CostUnit NRVVans3$18,000$16,000Trucks616,20015,2002-door sedans211,20013,2004-door sedans715,20018,200Sports cars328,00031,000SUVs526,40019,000 Because of recent increases in gasoline prices, the car dealership has noticed a reduced demand for its SUVs, vans, and trucks.Required:4. Determine the financial statement effects of using lower of cost and net realizable value to report inventory. (Make sure to enter amounts leading to account reduction with a minus sign.)I need assistance solving Requirement 4 (specifically, the four boxes with a red 'X', which are currently not correct). Requirements 1 through 3 have already been answered correctly -- a screenshot is attached to show those values. For Requirement 4, the text presets available to choose from are as follow:No Journal Entry RequiredAccounts PayableAccounts ReceivableAdvertising ExpenseAllowance for Uncollectible AccountsBuildingsCashCommon StockCost of Goods SoldDeferred RevenueDelivery ExpenseEntertainment ExpenseEquipmentFreight-InGainIncome Tax ExpenseInsurance ExpenseInterest ExpenseInterest PayableInterest ReceivableInterest RevenueInventoryLandLegal Fees ExpenseNotes PayableNotes ReceivablePostage ExpensePrepaid AdvertisingPrepaid InsurancePrepaid RentPurchase DiscountsPurchase ReturnsPurchasesRent ExpenseRepairs and Maintenance ExpenseRetained EarningsSalaries ExpenseSalaries PayableSales AllowancesSales DiscountsSales ReturnsSales RevenueService Fee ExpenseService RevenueSuppliesSupplies ExpenseUtilities ExpenseUtilities Payable Required 1InventoryItemsComplete this question by entering your answers in the tabs below.Required 1 Required 2Total costComplete this question by entering your answers in the tabs below.TotalCompute the total cost of the entire inventory.VansTrucks2-door sedans4-door sedansSports carsSUVSRequired 2Cost orNRVDetermine whether each inventory item would be reported at cost or net realizable value (NRV). Enter the amount of eitherthe Unit Cost or Unit NRV in the "Lower of Cost and NRV per unit" column and then multiply this amount by the quantity ofeach inventory item and enter it in the Total column.NRVNRVCostCostCostNRV✓✓✓$ 496,000✓✓✓Required 3 Required 4Lower ofCost andNRV perunit16,000 $15,200 ✓11,200✔15,200✔28,000✔19,000✔Total48,000✔91,200✔22,400✔106,400✔84,00095.000447,000Required 3< Required 1Required 4Required 3 >< Required 1Required 1 Required 2Complete this question by entering your answers in the tabs below.NoRequired 2 >1Transaction1Required 3Record any necessary adjusting entry to write down inventory from cost to net realizable value. (If no entry is required for atransaction/event, select "No Journal Entry Required" in the first account field.)Answer is not complete.Cost of Goods SoldInventoryRequired 4General Journal✓✓Debit49,000✔CreditPICCOLLAGE Complete this question by entering your answers in the tabs below.Required 1 Required 2 Required 3RevenuesDetermine the financial statement effects of using lower of cost and net realizable value to report inventory. (Make sure to enter amounts leading to account reductionwith a minus sign.)49,000 InventoryAssetsRequired 4(49,000) Inventory> Answer is complete but not entirely correct.XIncome Statement:Expenses49,000 Cost of Goods SoldBalance Sheet:49,000< Required 3LiabilitiesCost of Goods SoldRequired 4 >3Net Income(49,000)Stockholders'Equity(49,000)

Accepted Answer

1. In Income statement, there will be no effect on Revenue side due to decrease in the value of…

Inventory Items	Quantity	Unit Cost	Unit NRV
Vans	3	$18,000	$16,000
Trucks	6	16,200	15,200
2-door sedans	2	11,200	13,200
4-door sedans	7	15,200	18,200
Sports cars	3	28,000	31,000
SUVs	5	26,400	19,000