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31, 2022, the records indicated a cost of $70,700 ar ne year.

31, 2022, the records indicated a cost of $70,700 ar ne year.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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14, please answer the following question, thanks

Sarasota Enterprises Ltd.'s records reported an inventory cost of $56,500 and a net realizable value of $52,100 at December 31, 2021. At December 31, 2022, the records indicated a cost of $70,700 and a net realizable value of $60,500. All opening inventory had been sold during the year. (a) Assuming that Sarasota Enterprises uses a perpetual inventory system, prepare the December 31, 2022 entry that is needed under the direct method and the indirect method. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. List all debit entries before credit entries.) Date Dec. 31, 2022 Dec. 31, 2022 Account Titles and Explanation Direct method Indirect method Debit Credit 10"
Transcribed Image Text:Sarasota Enterprises Ltd.'s records reported an inventory cost of $56,500 and a net realizable value of $52,100 at December 31, 2021. At December 31, 2022, the records indicated a cost of $70,700 and a net realizable value of $60,500. All opening inventory had been sold during the year. (a) Assuming that Sarasota Enterprises uses a perpetual inventory system, prepare the December 31, 2022 entry that is needed under the direct method and the indirect method. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. List all debit entries before credit entries.) Date Dec. 31, 2022 Dec. 31, 2022 Account Titles and Explanation Direct method Indirect method Debit Credit 10"
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