On December 31st, 20X7, the net realisable value of a merchandise inventory was in the amount of…

On December 31st, 20X7, the net realisable value of a merchandise inventory was in the amount of 10,000 lei, while its cost raised to the amount of 12,000 lei. At the end of financial year 20X8, the net realisable value of the same inventory is of 11,500 lei. For evaluating the merchandise inventory in the balance sheet of financial year 20X8, the following transaction has to be recorded:

a. An impairment adjustment in the amount of 1500 lei;

b. A reversal of the impairment adjustment in the amount of 500 lei;

c. A reversal of the impairment adjustment in the amount of 1500 lei;

d. An impairment adjustment in the amount of 500 lei.

 

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