The Key West Group uses the lower of cost and net realizable value rule to value its kayak inventory.The Kayaks in inventory were purchased on January 1,2016 for $12,000.At year end December 31,2016 the net realizable value of Key West's inventory dropped to $9,000.At the end of 2017 due to a shortage of Kayaks this inventory increased in value to $15,000.
Required:
Prepare the required journal entries (if any)required at the 2016 and 2017 year end.

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The Answer of The Key West Group uses the lower of cost and net realizable value rule to value its kayak inventory.The Kayaks in inventory were purchased on January 1,2016 for $12,000.At year end December 31,2016 the net realizable value of Key West's inventory dropped to $9,000.At the end of 2017 due to a shortage of Kayaks this inventory increased in value to $15,000.
Required:
Prepare the required journal entries (if any)required at the 2016 and 2017 year end.

The Key West Group Uses the Lower of Cost and Net