Bramble 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 Date 2/31/25 + (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 2/31/26 + Date Cost $321,280 392,090 2/31/25 + Net Realizable Value 2/31/26 Cost of Goods Sold $295,520 370,230 Allowance to Reduce Inventory to NRV Allowance to Reduce Inventory to NRV Cost of Goods Sold (b) Prepare journal entries required at December 31, 2025, and December 31, 2026, assuming inventory is recorded at LCNRV and a perpetual system using the loss 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 0 for the amounts. Record journal entries in the order presented in the problem.) Account Titles and Explanation Cost of Goods Sold Allowance to Reduce Inventory to NRV Allowance to Reduce Inventory to NRV Debit Cost of Goods Sold Debit 25760 (c) Which of the two methods above provides the higher net income in each year? 3900 25760 Credi 3900 Credi
Bramble 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 Date 2/31/25 + (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 2/31/26 + Date Cost $321,280 392,090 2/31/25 + Net Realizable Value 2/31/26 Cost of Goods Sold $295,520 370,230 Allowance to Reduce Inventory to NRV Allowance to Reduce Inventory to NRV Cost of Goods Sold (b) Prepare journal entries required at December 31, 2025, and December 31, 2026, assuming inventory is recorded at LCNRV and a perpetual system using the loss 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 0 for the amounts. Record journal entries in the order presented in the problem.) Account Titles and Explanation Cost of Goods Sold Allowance to Reduce Inventory to NRV Allowance to Reduce Inventory to NRV Debit Cost of Goods Sold Debit 25760 (c) Which of the two methods above provides the higher net income in each year? 3900 25760 Credi 3900 Credi
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Bramble 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
Date
2/31/25 +
(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.)
2/31/26 +
Date
Cost
$321,280
392,090
2/31/25
Net Realizable
Value
2/31/26
$295,520
370,230
Account Titles and Explanation
Cost of Goods Sold
Allowance to Reduce Inventory to NRV
Allowance to Reduce Inventory to NRV
Cost of Goods Sold
(b) Prepare journal entries required at December 31, 2025, and December 31, 2026, assuming inventory is recorded at
LCNRV and a perpetual system using the loss 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 0 for the amounts. Record journal
entries in the order presented in the problem.)
Account Titles and Explanation
Cost of Goods Sold
Allowance to Reduce Inventory to NRV
Allowance to Reduce Inventory to NRV
Cost of Goods Sold
Debit
Both methods have the same effect
Debit
(c) Which of the two methods above provides the higher net income in each year?
25760
3900
25760
Credi
3900
Credi
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