) Prepare the journal entries required at December 31, 2025, and December 31, 2026, assuming inventory is recorded at LCNRV and a perpetual inventory system using the cost-of-goods-sold method. (Credit account titles are automatically indented when amount Is entered. Do not indent manually. If no entry is required, select "No entry"for the account titles and enter O for the amounts.
Crane Company began operations in 2025 and determined its ending inventory at cost and at LCNRV at December 31, 2025, and December 31, 2026. This information is presented below.
Net Realizable Cost Value 12/31/20 $354,700 $331,550 12/31/21 413,510 394,540
(a) Prepare the
(b) Prepare the journal entries required at December 31, 2025, and December 31, 2026, assuming inventory is recorded at LCNRV and a perpetual system using the loss method. (Credit account titles are automatically indented when amount Is entered. Do not indent manually. If no entry is required, select "No entry"for the account titles and enter O for the amounts.)
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