Business, 15.02.2020 02:29 lily539711

At the end of year 1, a company reduced its inventory cost from $100 to its net realizable value of $80. As of the end of year 2, the inventory was still on hand and its net realizable value increased to $150. Under IFRS, what journal entry should the company record for year 2 to properly report the inventory value?

A. Debit inventory for $20 and credit expense for $20.
B. Debit inventory for $70 and credit expense for $70.
C. Debit inventory for $70, credit retained earnings for $50, and credit expense for $20.
D. Debit inventory for $20, debit expense for $30, and credit retained earnings for $50.

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At the end of year 1, a company reduced its inventory cost from $100 to its net realizable value of...

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