Bonita Company began operations in 2025 and determined its ending inventory at cost and at LCNRV at December 31, 2025, and December 31, 2026. This information is presented below. 12/31/25 12/31/26 Cost $312,750 393,920 Date Net Realizable Value $286,430 371,370 (a) Prepare the journal entries required at December 31, 2025, and December 31, 2026, assuming inventory is recorded at LCNRV and a perpetual inventory system using the cost-of-goods-sold method. (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.) Account Titles and Explanation Debit Credit

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Chapter1: Financial Statements And Business Decisions
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Bonita Company began operations in 2025 and determined its ending inventory at cost and at LCNRV at December 31, 2025, and
December 31, 2026. This information is presented below.
12/31/25
12/31/26
Cost
$312,750
393,920
Date
Net Realizable
Value
$286,430
371,370
(a) Prepare the journal entries required at December 31, 2025, and December 31, 2026, assuming inventory is recorded at LCNRV and
a perpetual inventory system using the cost-of-goods-sold method. (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.)
Account Titles and Explanation
Debit
Credit
Transcribed Image Text:Bonita Company began operations in 2025 and determined its ending inventory at cost and at LCNRV at December 31, 2025, and December 31, 2026. This information is presented below. 12/31/25 12/31/26 Cost $312,750 393,920 Date Net Realizable Value $286,430 371,370 (a) Prepare the journal entries required at December 31, 2025, and December 31, 2026, assuming inventory is recorded at LCNRV and a perpetual inventory system using the cost-of-goods-sold method. (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.) Account Titles and Explanation Debit Credit
Bonita Company began operations in 2025 and determined its ending inventory at cost and at LCNRV at December 31, 2025, and
December 31, 2026. This information is presented below.
12/31/25
12/31/26
Cost
$312,750
393,920
Date
Net Realizable
Value
$286,430
371,370
(a) Prepare the journal entries required at December 31, 2025, and December 31, 2026, assuming inventory is recorded at LCNRV and
a perpetual inventory system using the cost-of-goods-sold method. (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.)
Account Titles and Explanation
Debit
Credit
Transcribed Image Text:Bonita Company began operations in 2025 and determined its ending inventory at cost and at LCNRV at December 31, 2025, and December 31, 2026. This information is presented below. 12/31/25 12/31/26 Cost $312,750 393,920 Date Net Realizable Value $286,430 371,370 (a) Prepare the journal entries required at December 31, 2025, and December 31, 2026, assuming inventory is recorded at LCNRV and a perpetual inventory system using the cost-of-goods-sold method. (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.) Account Titles and Explanation Debit Credit
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