some expert tutor answer this query asap for both Neighbourhood Electronics runs a small storecarrying four items of inventory. At the endof its fiscal year, the physical stock take,their book value, and the market(replacement) price were compiled.UnitsBook costMarket priceCell phones128$ 85$ 66Android Tablets765460Kindles47105108Chrome books246361The company's policy is to record closinginventory at a lower cost or market value,using individual valuation.What correcting entries will this companymake at the fiscal year end?

the correcting entries that Neighbourhood Electronics should make at the end of the fiscal year, we…

Answered: Neighbourhood Electronics runs a small…

SWFT Individual Income Taxes

43rd Edition

ISBN:9780357391365

Author:YOUNG

Publisher:YOUNG

Chapter18: Accounting Periods And Methods

Section: Chapter Questions

Problem 67P

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Lower of Cost or Market Garcia Company uses FIFO, and its inventory at the end of the year was recorded in the accounting records at $17,800. Due to technological changes in the market, Garcia would be able to replace its inventory for $16,500. Required: 1. Using the lower of cost or market method, what amount should Garcia report for inventory on its balance sheet at the end of the year? 2. Prepare the journal entry required to value the inventory at the lower of cost or market.
Purrfect Pets uses the perpetual inventory system. At the beginning of the quarter, Purrfect Pets has $35,000 in inventory. During the quarter, the company purchased, $8,650 of new inventory from a vendor, returned $1,200 of inventory to the vendor, and took advantage of discounts from the vendor of $250. At the end of the quarter, the balance in inventory is $29,000 What is the cost of goods sold? A. $6,000 B. $14,650 C. $14,650 D. $13,200 E. $15,150
e
The Sherri’s Retail Shop uses the FIFO retail inventory method to determine its ending inventory. The accounting records for the current year for Sherri’s contained the following information: Cost Retail Purchases $225,000 $362,250 Beginning inventory 55,000 73,000 Sales 385,750 Net markups 32,500 Net markdowns 19,750 Employee discounts 12,500 What is the cost-to-retail percentage to be used for ending inventory calculations? a. 59.9% b. 60.0% c. 62.1% d. 62.5%
What is the cost of goods sold?
H.T. Tan Company is preparing the annual financial statements dated December 31 of the current year. Ending inventory information about the five major items stocked for regular sale follows: Item Quantity on Hand Unit Cost When Acquired (FIFO) Net Realizable Value (Market) at Year-End A 70 $ 21 $ 24 B 100 49 39 30 61 57 D 90 39 34 E 370 14 19 Required: {Subject:- General Account}{4} Compute the valuation that should be used for the current year-ending inventory using lower cost or net realizable value applied on an item- by-item basis.
Jonas Company is preparing the annual financial statements dated December 31 of the current year. Ending inventory information about the five major items stocked for regular sales follow: ENDING INVENTORY, CURRENT YEAR Ite Quantity on Unit Cost When m Hand Acquired (FIFO) Net Realizable Value (Market) at Year-End A 60 $25 $ 22 B 90 40 60 0 20 58 62 D 80 35 40 E 360 20 15 Compute the valuation that should be used for the current year ending inventory using the LCM rule applied on an item-by-item basis. Item Quantity Total Cost Total Market LCM Valuation A 60 60 B 90 0 20 D 80 E 360 Total
Donaldson Corporation uses a periodic inventory system. On January 1, inventory is $253,000. On April 5, Donaldson sells inventory with a selling price of $75,000 on account. The cost of the inventory sold is $50,000. The journal entry (entries) to record the sale is (are) ________. Group of answer choices debit Accounts Receivable and credit Sales Revenue; debit Cost of Goods Sold and credit Inventory debit Cash and Cost of Goods Sold and credit Sales Revenue and Inventory debit Accounts Receivable and credit Sales Revenue debit Cash and credit Sales Revenue
Hot Pepper Company had the following information in its accounting records at year end:Inventory Cost $4,000,000It estimates the net realizable value of this inventory is $3,500,000. As a result of this information Hot Pepper Co. would: Make a journal entry debiting a loss on inventory decline for $500,000 Make a journal entry debiting the allowance for inventory valuation for $500,000 Make a journal entry crediting the allowance for inventory valuation for $500,000 Make a journal entry debiting a gain on market appreciation for $500,000 Make no entry
What is the correct journal entry, and the empty cells there?
Morse Inc. is a retail company that uses the perpetual inventory method. Assume that there are no credit transactions and all amounts are settled in cash. Calculate the ending inventory for the following cost flow assumption: LIFO. You have the following information for Morse Inc. for the month of January 2014. Unit Cost or Date Description Quantity Selling Price Dec. 31 Ending inventory 140 $ 14 Jan. 2 Purchase 120 15 Jan. 6 Sale 150 30 Jan. 9 Purchase 85 17 Jan. 10 Sale 70 35 Jan. 23 Purchase 100 20 Jan. 30 Sale 110 42
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