Assuming that each of the amounts is material, state whether the merchandise should be included in

the client's inventory, and give your reason for your decision on each
Instructions

a. Determine the inventory as of December 31, 2019, by the LCNRV method, applying this method to
each item.

b. Determine the inventory by the LCNRV method, applying the method to the total of the inventory

8.5 (LO2) (Determining Merchandise Amounts—Periodic) Two or more items are omitted in each of
the tabulations of income statement data shown below.
’;
Instructions Using the following format, prepare a schedule of adjustments as of December 31, 2019, to
the initial amounts per Dimitri's accounting records. Show separately the effect, if any, of each of the
eight transactions on the December 31, 2019, amounts. If the transactions would have no effect on the
initial amount shown, enter NONE.

Instructions a. Determine the inventory as of December 31, 2019, by the LCNRV method,
applying this method to each item. b. Determine the inventory by the LCNRV method, applying the
method to the total of the inventory.