Bluebell Company sells blue jeans.Last year,bell-bottom jeans were fashionable; this year,boot cut jeans are in style.The company has 375 units of bell-bottom jeans with a cost of $17 per unit and a market value of $15 per unit.The inventory also includes 1,000 units of boot cut jeans with a cost of $16 per unit and a market value of $19 per unit.
Required:
Part a - Explain whether this situation requires an adjustment to the accounting records.
Part b - Prepare the journal entry,if any,that is required to adjust the Inventory account.

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The Answer of Bluebell Company sells blue jeans.Last year,bell-bottom jeans were fashionable; this year,boot cut jeans are in style.The company has 375 units of bell-bottom jeans with a cost of $17 per unit and a market value of $15 per unit.The inventory also includes 1,000 units of boot cut jeans with a cost of $16 per unit and a market value of $19 per unit.
Required:
Part a - Explain whether this situation requires an adjustment to the accounting records.
Part b - Prepare the journal entry,if any,that is required to adjust the Inventory account.

Bluebell Company Sells Blue Jeans