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 1B Item Alligator Armoires Bear Bureaus Cougar Credenzas Dingo Cribs Elephant Dressers Complete the table column "Write-Down per Item" and then sum the final column. Unit Cost NRV per (FIFO) Write-down per Item Quantity on Hand Item Req 2 $ 60 $ 53 23 20 52 54 53 30 20 48 35 55 90 75 70 Total Write- down
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 1B Item Alligator Armoires Bear Bureaus Cougar Credenzas Dingo Cribs Elephant Dressers Complete the table column "Write-Down per Item" and then sum the final column. Unit Cost NRV per (FIFO) Write-down per Item Quantity on Hand Item Req 2 $ 60 $ 53 23 20 52 54 53 30 20 48 35 55 90 75 70 Total Write- down
Financial Accounting
15th Edition
ISBN:9781337272124
Author:Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:Carl Warren, James M. Reeve, Jonathan Duchac
Chapter6: Accounting For Merchandising Businesses
Section: Chapter Questions
Problem 9PA: On December 31, 2019, the balances of the accounts appearing in the ledger of Wyman Company are as...
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![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
Item
Req 1B
Complete the table column "Write-Down per Item" and then sum the final column.
NRV per
Item
Write-down
per Item
Quantity on
Hand
Alligator Armoires
Bear Bureaus
Cougar Credenzas
Dingo Cribs
Elephant Dressers
Req 2
Unit Cost
(FIFO)
$
60 $
53
23
20
52
$8888
54
53
30
20
48
Req 1A
35
55
075 70
90
Req 1B
Total Write-
down](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F80e55f2b-a9f8-41e7-bc77-cc4383910bdd%2F5efc1d1d-dc7b-4143-ad71-a0d9c85447d5%2Fhg7zg4r_processed.png&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
Item
Req 1B
Complete the table column "Write-Down per Item" and then sum the final column.
NRV per
Item
Write-down
per Item
Quantity on
Hand
Alligator Armoires
Bear Bureaus
Cougar Credenzas
Dingo Cribs
Elephant Dressers
Req 2
Unit Cost
(FIFO)
$
60 $
53
23
20
52
$8888
54
53
30
20
48
Req 1A
35
55
075 70
90
Req 1B
Total Write-
down
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