Sales Company Ltd.paid $10 wholesale for one unit of inventory for resale in the retail market.The same inventory can now be purchased for $9.The retail sales price of the inventory is $13,however,it normally costs $2 to sell each unit.Using the lower-of-cost-and-net-realizable-value rule the inventory would be reported on Sales Company Ltd.'s balance sheet at:

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The Answer of Sales Company Ltd.paid $10 wholesale for one unit of inventory for resale in the retail market.The same inventory can now be purchased for $9.The retail sales price of the inventory is $13,however,it normally costs $2 to sell each unit.Using the lower-of-cost-and-net-realizable-value rule the inventory would be reported on Sales Company Ltd.'s balance sheet at: