4. Given the following information for the Network Company: Date December 31, 2018 December 31, 2019 December 31, 2020 Cost $ 800 1,000 Market $ 800 940 1,100 1,060 If the allowance method of recording lower of cost or market is in use, which December 31, 2020 entry is not correct? Loss Due to Market Valuation Allowance to Reduce Inventory to Market b. Allowance to Reduce Inventory to Market Loss Recovery Due to Market Valuation Inventory Income Summary d Income Summary 40 a. 40 20 20 C. 1,100 1,100 1,000 Inventory 1,000

FINANCIAL ACCOUNTING
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Author:Libby
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Chapter1: Financial Statements And Business Decisions
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4. Given the following information for the Network Company:
Market
$ 800
Date
December 31, 2018
December 31, 2019
December 31, 2020
Cost
$ 800
1,000
940
1,100
1,060
If the allowance method of recording lower of cost or market is in use, which December 31, 2020
entry is not correct?
Loss Due to Market Valuation
40
a.
Allowance to Reduce Inventory to Market
b. Allowance to Reduce Inventory to Market
Loss Recovery Due to Market Valuation
40
20
20
c. Inventory
1,100
Income Summary
d Income Summary
1,100
1,000
Inventory
1,000
Transcribed Image Text:4. Given the following information for the Network Company: Market $ 800 Date December 31, 2018 December 31, 2019 December 31, 2020 Cost $ 800 1,000 940 1,100 1,060 If the allowance method of recording lower of cost or market is in use, which December 31, 2020 entry is not correct? Loss Due to Market Valuation 40 a. Allowance to Reduce Inventory to Market b. Allowance to Reduce Inventory to Market Loss Recovery Due to Market Valuation 40 20 20 c. Inventory 1,100 Income Summary d Income Summary 1,100 1,000 Inventory 1,000
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