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
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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

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

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
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