Peterson Furniture Designs is preparing the annual financial statements dated December 31, Ending inventory information ab five major items stocked for regular sale follows: Required: 1-a. Complete the table column "Write-Down per Item" and then sum the final column. 1-b. Compute the amount of the total write-down when the LCM/NRV rule is applied to each item. 2. Prepare the journal entry Peterson Furniture Designs would record on December 31 to write down its inventory to LCM/N Complete this question by entering your answers in the tabs below. Req 1A Req 2 Complete the table column "Write-Down per Item" and then sum the final column. NRV per Unit Cost (FIFO) Write-down per Item Item $ Item Alligator Armoires Bear Bureaus Cougar Credenzas Dingo Cribs Elephant Dressers Req 18 25387 40 31 34 20 24 $ 25988 32 31 40 20 20 Reg 1A Quantity on Hand 40 15 90 85 35 Total Write- down Req 18 >
Peterson Furniture Designs is preparing the annual financial statements dated December 31, Ending inventory information ab five major items stocked for regular sale follows: Required: 1-a. Complete the table column "Write-Down per Item" and then sum the final column. 1-b. Compute the amount of the total write-down when the LCM/NRV rule is applied to each item. 2. Prepare the journal entry Peterson Furniture Designs would record on December 31 to write down its inventory to LCM/N Complete this question by entering your answers in the tabs below. Req 1A Req 2 Complete the table column "Write-Down per Item" and then sum the final column. NRV per Unit Cost (FIFO) Write-down per Item Item $ Item Alligator Armoires Bear Bureaus Cougar Credenzas Dingo Cribs Elephant Dressers Req 18 25387 40 31 34 20 24 $ 25988 32 31 40 20 20 Reg 1A Quantity on Hand 40 15 90 85 35 Total Write- down Req 18 >
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
![Peterson Furniture Designs is preparing the annual financial statements dated December 31. Ending inventory information about the
five major items stocked for regular sale follows:
Required:
1-a. Complete the table column "Write-Down per Item" and then sum the final column.
1-b. Compute the amount of the total write-down when the LCM/NRV rule is applied to each item.
2. Prepare the journal entry Peterson Furniture Designs would record on December 31 to write down its inventory to LCM/NRV.
Complete this question by entering your answers in the tabs below.
Req 1A
Req 2
Complete the table column "Write-Down per Item" and then sum the final column.
NRV per
Item
Write-down
per item
Item
Alligator Armoires
Bear Bureaus
Cougar Credenzas
Dingo Cribs
Elephant Dressers
Req 18
Unit Cost
(FIFO)
$
40 $
31
34
20
24
88823
31
40
20
20
Reg 1A
Quantity on
Hand
40
15
90
85
35
Total Write-
down
Req 18 >](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F715a56dd-67a4-4a69-b573-88af875eaa9d%2F6fc7aaf2-b9dd-4a1f-a027-cf64aa76be65%2Ft60m4o4_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Peterson Furniture Designs is preparing the annual financial statements dated December 31. Ending inventory information about the
five major items stocked for regular sale follows:
Required:
1-a. Complete the table column "Write-Down per Item" and then sum the final column.
1-b. Compute the amount of the total write-down when the LCM/NRV rule is applied to each item.
2. Prepare the journal entry Peterson Furniture Designs would record on December 31 to write down its inventory to LCM/NRV.
Complete this question by entering your answers in the tabs below.
Req 1A
Req 2
Complete the table column "Write-Down per Item" and then sum the final column.
NRV per
Item
Write-down
per item
Item
Alligator Armoires
Bear Bureaus
Cougar Credenzas
Dingo Cribs
Elephant Dressers
Req 18
Unit Cost
(FIFO)
$
40 $
31
34
20
24
88823
31
40
20
20
Reg 1A
Quantity on
Hand
40
15
90
85
35
Total Write-
down
Req 18 >
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