Malone Company determined its ending inventory at cost and at LCNRV at December31, 2019, December 31, 2020, and December 31, 2021, as shown below. Cost LCNRV12/31/2019 $650,000 $650,00012/31/2020 780,000 712,00012/31/2021 905,000 830,000Instructions(a). Prepare the journal entries required at December 31, 2020, and at December 31,2021, assuming that a perpetual inventory system and the cost-of-goods-soldmethod of adjusting to LCNRV is used.(b). Prepare the journal entries required at December 31, 2020, and at December 31,2021, assuming that a perpetual inventory is recorded at cost and reduced toLCNRV using the loss method.
Malone Company determined its ending inventory at cost and at LCNRV at December31, 2019, December 31, 2020, and December 31, 2021, as shown below. Cost LCNRV12/31/2019 $650,000 $650,00012/31/2020 780,000 712,00012/31/2021 905,000 830,000Instructions(a). Prepare the journal entries required at December 31, 2020, and at December 31,2021, assuming that a perpetual inventory system and the cost-of-goods-soldmethod of adjusting to LCNRV is used.(b). Prepare the journal entries required at December 31, 2020, and at December 31,2021, assuming that a perpetual inventory is recorded at cost and reduced toLCNRV using the loss method.
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter8: Inventories: Special Valuation Issues
Section: Chapter Questions
Problem 14RE: Refer to the information provided in RE8-4. If Paul Corporations inventory at January 1, 2019, had a...
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Malone Company determined its ending inventory at cost and at LCNRV at December
31, 2019, December 31, 2020, and December 31, 2021, as shown below.
Cost LCNRV
12/31/2019 $650,000 $650,000
12/31/2020 780,000 712,000
12/31/2021 905,000 830,000
Instructions
(a). Prepare the
2021, assuming that a perpetual inventory system and the cost-of-goods-sold
method of adjusting to LCNRV is used.
(b). Prepare the journal entries required at December 31, 2020, and at December 31,
2021, assuming that a perpetual inventory is recorded at cost and reduced to
LCNRV using the loss method.
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