Information about the ending inventories of Charleston Chair Company, who applies the LIFO method, is shown below. Selling Price Year 2020 2021 2022 Cost $10,000 15,000 20,000 Current Replacement Cost $11,500 13,000 18,600 $12,000 14,000 24,000 Cost of Completion $1,000 1,500 2,200 Normal Profit Margin $1,100 1,250 2,900 Required: a. Determine the value of the inventory for each year using the lower of cost or market rule. b. Assuming that Charleston Chair Company maintains a periodic inventory system, prepare journal entries for 2022 to record the reduction of the inventory to market value using: 1. the direct method 2. the allowance method
Information about the ending inventories of Charleston Chair Company, who applies the LIFO method, is shown below. Selling Price Year 2020 2021 2022 Cost $10,000 15,000 20,000 Current Replacement Cost $11,500 13,000 18,600 $12,000 14,000 24,000 Cost of Completion $1,000 1,500 2,200 Normal Profit Margin $1,100 1,250 2,900 Required: a. Determine the value of the inventory for each year using the lower of cost or market rule. b. Assuming that Charleston Chair Company maintains a periodic inventory system, prepare journal entries for 2022 to record the reduction of the inventory to market value using: 1. the direct method 2. the allowance method
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Hi !!! I need some help with part B. Thank you!
![General Journal
General Journal Instructions
b1. Assuming that Charleston Chair Company maintains a periodic inventory system, prepare journal entries for December 31, 2022 to record the re
of the inventory to market value using the direct method.
1
2
3
1
2
3
4
5
In
b2. Assuming that Charleston Chair Company maintains a periodic inventory system, prepare journal entries for December 31, 2022 to record the re
of the inventory to market value using the allowance method.
6
DATE
7
GENERAL JOURNAL
DATE
ACCOUNT TITLE
GENERAL JOURNAL
POST. REF.
ACCOUNT TITLE
DEBIT
POST. REF.
PAGE 1
DEBIT
CREDIT
PAGE 1
CREDIT](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F490a9595-d5f1-4cf2-a91a-5c38599b15d4%2F91b966dd-d6d1-4772-97a7-4def123d61f0%2Fdqtbsn_processed.jpeg&w=3840&q=75)
Transcribed Image Text:General Journal
General Journal Instructions
b1. Assuming that Charleston Chair Company maintains a periodic inventory system, prepare journal entries for December 31, 2022 to record the re
of the inventory to market value using the direct method.
1
2
3
1
2
3
4
5
In
b2. Assuming that Charleston Chair Company maintains a periodic inventory system, prepare journal entries for December 31, 2022 to record the re
of the inventory to market value using the allowance method.
6
DATE
7
GENERAL JOURNAL
DATE
ACCOUNT TITLE
GENERAL JOURNAL
POST. REF.
ACCOUNT TITLE
DEBIT
POST. REF.
PAGE 1
DEBIT
CREDIT
PAGE 1
CREDIT
![Instructions
Information about the ending inventories of Charleston Chair Company, who applies the LIFO method, is shown below:
Year
2020
2021
2022
Cost
$10,000
15,000
20,000
Current
Replacement Cost
$11,500
13,000
18,600
Selling
Price
$12,000
14,000
24,000
Cost of
Completion
$1,000
1,500
2,200
Normal
Profit Margin
$1,100
1,250
2,900
Required:
a. Determine the value of the inventory for each year using the lower of cost or market rule.
b. Assuming that Charleston Chair Company maintains a periodic inventory system, prepare journal entries for 2022 to record the
reduction of the inventory to market value using:
1. the direct method
2. the allowance method](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F490a9595-d5f1-4cf2-a91a-5c38599b15d4%2F91b966dd-d6d1-4772-97a7-4def123d61f0%2Fpm3jijy_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Instructions
Information about the ending inventories of Charleston Chair Company, who applies the LIFO method, is shown below:
Year
2020
2021
2022
Cost
$10,000
15,000
20,000
Current
Replacement Cost
$11,500
13,000
18,600
Selling
Price
$12,000
14,000
24,000
Cost of
Completion
$1,000
1,500
2,200
Normal
Profit Margin
$1,100
1,250
2,900
Required:
a. Determine the value of the inventory for each year using the lower of cost or market rule.
b. Assuming that Charleston Chair Company maintains a periodic inventory system, prepare journal entries for 2022 to record the
reduction of the inventory to market value using:
1. the direct method
2. the allowance method
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