Following is data relative to the 12/31/21 inventory of Jenner:ItemABCDE(a)(b)ItemAOriginal CostPer UnitB$0.75C0.40D0.60Selling price is $1.00/unit for all items. Disposal costs amount to 10% of selling price and a "normal" profit is 30% of selling price. Thereare 1.200 units of each item in the 12/31/21 inventory.E0.600.70Prepare the entry at 12/31/20 necessary to implement the lower-of-cost-or-market procedure assurhing Crane uses a contraaccount for its balance sheet. (Credit account titles are automatically indented when the amount is entered. Do not indent manually)ReplacementCost$0.400.35Date Account Titles and Explanation12/31/20 Loss Due to Market Decline of Inventory0.650.500.65Complete the last three columns in the 12/31/21 schedule below based upon the lower-of-cost-or-market rules.Original CostPer UnitAllowance to Reduce Inventory to Market$0.750.400.600.600.70ReplacementCost$0.4010.350.650.500.65Debit$1600Net RealizableValueCredit1600Net Realizable ValueLess Normal Profit (c).Prepare the entries necessary at 12/31/21 based on the data above. (Credit account titles are automatically indented when theamount is entered. Do not indent manually.)Date Account Titles and Explanation12/31/2112/31/21(To record cost of goods sold)(To record profit/ loss)DebitCredit

Journal entry to record reduction of inventory. The last three columns in the 12/31/21 schedule.

Following is data relative to the 12/31/21 inventory of Jenner: Item A B с D E Original Cost Per Unit $0.75 (a) 0.40 0.60 0.60 0.70 12/31/20 Replacement Cost $0.40 0.35 0.65 Selling price is $1.00/unit for all items. Disposal costs amount to 10% of selling price and a "normal" profit is 30% of selling price. Them are 1.200 units of each item in the 12/31/21 inventory. 0.50 0.65 Prepare the entry at 12/31/20 necessary to implement the lower-of-cost-or-market procedure assuming Crane uses a contra account for its balance sheet. (Credit account titles are automatically indented when the amount is entered. Do not indent manually) Date Account Titles and Explanation Loss Due to Market Decline of Inventory Debit 1600 Credit

Following is data relative to the 12/31/21 inventory of Jenner: Item A B с D E Original Cost Per Unit $0.75 (a) 0.40 0.60 0.60 0.70 12/31/20 Replacement Cost $0.40 0.35 0.65 Selling price is $1.00/unit for all items. Disposal costs amount to 10% of selling price and a "normal" profit is 30% of selling price. Them are 1.200 units of each item in the 12/31/21 inventory. 0.50 0.65 Prepare the entry at 12/31/20 necessary to implement the lower-of-cost-or-market procedure assuming Crane uses a contra account for its balance sheet. (Credit account titles are automatically indented when the amount is entered. Do not indent manually) Date Account Titles and Explanation Loss Due to Market Decline of Inventory Debit 1600 Credit

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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