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Inventory Write-off Due to the shortage of staff. the PP accountant admitted that there was no time to
figure out the value of obsolete inventory. She simply applied prior year’s percentages to the December
31, 2022 yearend inventory balance. The table below is an excerpt of the piano parts invento… Show more
figure out the value of obsolete inventory. She simply applied prior year’s percentages to the December
31, 2022 yearend inventory balance. The table below is an excerpt of the piano parts invento… Show more
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Excerpt Financial Statements The following are excerpts from PP’s December 31, 2022 financial
statements (unaudited): Revenue $3,900,990 Assets Cash $840,989 Note 1 Inventory $7,723,200 Note 2
Property Plant and Equipment $2,578,900 Note 3 Note 1 – Includes the cost of five Bitcoins.… Show more
statements (unaudited): Revenue $3,900,990 Assets Cash $840,989 Note 1 Inventory $7,723,200 Note 2
Property Plant and Equipment $2,578,900 Note 3 Note 1 – Includes the cost of five Bitcoins.… Show more
The $48,000 amount of inventory write-off in 2022 is incorrect since an auditor has no time to review correct amounts. I would need detailed explanations about calculation and analysis why the 2022 inventory write-off amount is not correct based on using the information above.
