Accounting For Damaged Inventory
Brandon's Bike Shop receives a shipment of 50 new bicycles, five of which are damaged in transit. Brandon determines that three of the damaged bicycles can be sold at a reduced price, while the remaining two will be returned to the supplier. How should the shop account for these five damaged bicycles in its inventory records?
ARecord only the three bicycles to be sold at their full purchase price
BRecord only the three bicycles to be sold at their net realizable value (the reduced price)
CInclude all five bicycles at their full purchase price until the return is resolved
DExclude all five damaged bicycles from the inventory records