At the end of a reporting period,Gamble Corporation determines that its ending inventory has a cost of $300,000 and a net realizable value of $230,000.What would be the effect(s)of the adjustment to write down inventory to net realizable value?

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Writing down inventory to net realizable value means reducing the cost of inventory to its estimated selling price, which is lower than the original cost. This results in a decrease in the value of inventory and, therefore, a decrease in total assets. The decrease in the value of inventory also means a decrease in gross profit, which results in a decrease in net income. As a result, there is a decrease in both total assets and net income. Retained earnings are not directly affected by this adjustment.

At the End of a Reporting Period,Gamble Corporation Determines That