Kingsley Textiles measures inventory at the lower of cost and net realisable value (IAS 2).
| Date | Event |
|---|
| December 15 | Purchased inventory on account for $30,000. |
| December 31 | A year-end review shows inventory that cost $50,000 now has a net realisable value of only $44,000. |
Required: Prepare the entry for the December 15 purchase and the December 31 entry to write the inventory down to net realisable value. Record the write-down through Cost of Goods Sold.