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Paul Corporation uses FIFO and reports the following inventory information: Cost NRV December 31, 2019 $312,000 $298,000 Assume Paul Corporation's inventory at January 1, 2019 had a cost and net realizable value of $300,000. Required: Prepare the journal entry to record the reductions to NRV assuming that Paul uses a periodic inventory system and the direct method. GENERAL JOURNAL DATE ACCOUNT TITLE 1 Dec. 31 Cost of Goods Sold 2 Allowance to Reduce Inventory to Market 3 Dec. 31 Loss Due to Market Valuation Inventory PAGE 1 Score: 23/51 POST. REF. DEBIT CREDIT 14,000.00 14,000.00 14,000.00 14,000.00

Paul Corporation uses FIFO and reports the following inventory information: Cost NRV December 31, 2019 $312,000 $298,000 Assume Paul Corporation's inventory at January 1, 2019 had a cost and net realizable value of $300,000. Required: Prepare the journal entry to record the reductions to NRV assuming that Paul uses a periodic inventory system and the direct method. GENERAL JOURNAL DATE ACCOUNT TITLE 1 Dec. 31 Cost of Goods Sold 2 Allowance to Reduce Inventory to Market 3 Dec. 31 Loss Due to Market Valuation Inventory PAGE 1 Score: 23/51 POST. REF. DEBIT CREDIT 14,000.00 14,000.00 14,000.00 14,000.00

FINANCIAL ACCOUNTING
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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Paul Corporation uses FIFO and reports the following inventory information: Cost NRV December 31, 2019 $312,000 $298,000 Assume Paul Corporation's inventory at January 1, 2019 had a cost and net realizable value of $300,000. Required: Prepare the journal entry to record the reductions to NRV assuming that Paul uses a periodic inventory system and the direct method. GENERAL JOURNAL DATE ACCOUNT TITLE 1 Dec. 31 Cost of Goods Sold 2 Allowance to Reduce Inventory to Market 3 Dec. 31 Loss Due to Market Valuation Inventory PAGE 1 Score: 23/51 POST. REF. DEBIT CREDIT 14,000.00 14,000.00 14,000.00 14,000.00
Transcribed Image Text:Paul Corporation uses FIFO and reports the following inventory information: Cost NRV December 31, 2019 $312,000 $298,000 Assume Paul Corporation's inventory at January 1, 2019 had a cost and net realizable value of $300,000. Required: Prepare the journal entry to record the reductions to NRV assuming that Paul uses a periodic inventory system and the direct method. GENERAL JOURNAL DATE ACCOUNT TITLE 1 Dec. 31 Cost of Goods Sold 2 Allowance to Reduce Inventory to Market 3 Dec. 31 Loss Due to Market Valuation Inventory PAGE 1 Score: 23/51 POST. REF. DEBIT CREDIT 14,000.00 14,000.00 14,000.00 14,000.00
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