Find the correct amount of inventory

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Problem - Entity A's inventories on December 31, 20x1 have a cost of P1 00,000 and a net realizable value of 80,000. Accordingly, Entity A recognized a write-down of inventories of 20,000. Shortly after December 31, 20x1, but before the financial statements were authorized for issue, the inventories were sold for a net sale proceeds of 70,000. Find the correct amount of inventory write-down to be reported in Entity A's December 31, 20x1 financial statements?

Reference no: EM132861724

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