Homework Help is Here – Start Your Trial Now!
Business
Accounting
Blossom Comapny began operations in 2024 and determined its ending at cost and at lower-of-LIFO cost-or-market at December 31, 2024 and December 31, 2025. This information is presented below                          Cost             Lower-of-cost-or-market  12/31/2024      $338,590              $318,550 21/31/2025        396,510                380,220

Blossom Comapny began operations in 2024 and determined its ending at cost and at lower-of-LIFO cost-or-market at December 31, 2024 and December 31, 2025. This information is presented below                          Cost             Lower-of-cost-or-market  12/31/2024      $338,590              $318,550 21/31/2025        396,510                380,220

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
See similar textbooks
icon
Related questions
Question

Blossom Comapny began operations in 2024 and determined its ending at cost and at lower-of-LIFO cost-or-market at December 31, 2024 and December 31, 2025. This information is presented below

                         Cost             Lower-of-cost-or-market 

12/31/2024      $338,590              $318,550

21/31/2025        396,510                380,220

 

(b) Prepare journal entries required at December 31, 2024, and December 31, 2025, assuming that the inventory is recorded at market under a perpetual system (loss method is used). (List all debit entries before credit entries. Credit account titles are automatically indented when 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. Record journal entries in the order presented in the problem.) Date 12/31/24 12/31/25 Account Titles and Explanation Cost of Goods Sold Allowance to Reduce Inventory to Market Debit 000 Credit
Transcribed Image Text:(b) Prepare journal entries required at December 31, 2024, and December 31, 2025, assuming that the inventory is recorded at market under a perpetual system (loss method is used). (List all debit entries before credit entries. Credit account titles are automatically indented when 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. Record journal entries in the order presented in the problem.) Date 12/31/24 12/31/25 Account Titles and Explanation Cost of Goods Sold Allowance to Reduce Inventory to Market Debit 000 Credit
(a) Prepare the journal entries required at December 31, 2024, and December 31, 2025, assuming that the inventory is recorded at market, and a perpetual inventory system (cost-of-goods-sold method) is used. (List all debit entries before credit entries. Credit account titles are automatically indented when 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. Record journal entries in the order presented in the problem.) Date 12/31/24 12/31/25 Account Titles and Explanation Cost of Goods Sold Allowance to Reduce Inventory to NRV Debit 20,040 16,290 Credit 20,040 16,290
Transcribed Image Text:(a) Prepare the journal entries required at December 31, 2024, and December 31, 2025, assuming that the inventory is recorded at market, and a perpetual inventory system (cost-of-goods-sold method) is used. (List all debit entries before credit entries. Credit account titles are automatically indented when 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. Record journal entries in the order presented in the problem.) Date 12/31/24 12/31/25 Account Titles and Explanation Cost of Goods Sold Allowance to Reduce Inventory to NRV Debit 20,040 16,290 Credit 20,040 16,290
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 3 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Accounting Changes and Error Analysis
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education
SEE MORE TEXTBOOKS