Sheffield Inc. uses a perpetual inventory system, At January 1, 2025, inventory was $479,360 at both cost and net realizable value. At December 31, 2025, the inventory was $640,640 at cost and $593,600 at net realizable value. Prepare the entry under (a) the cost-of-goods-sold method and (b) the loss method. (List all debit entries before credit entries. 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) No. Account Titles and Explanation (a) (b) Debit Credit
Sheffield Inc. uses a perpetual inventory system, At January 1, 2025, inventory was $479,360 at both cost and net realizable value. At December 31, 2025, the inventory was $640,640 at cost and $593,600 at net realizable value. Prepare the entry under (a) the cost-of-goods-sold method and (b) the loss method. (List all debit entries before credit entries. 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) No. Account Titles and Explanation (a) (b) Debit Credit
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Sheffield Inc. uses a perpetual inventory system. At January 1, 2025, inventory was $479,360 at both cost and net realizable value. At
December 31, 2025, the inventory was $640,640 at cost and $593,600 at net realizable value.
Prepare the entry under (a) the cost-of-goods-sold method and (b) the loss method. (List all debit entries before credit entries. 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)
No. Account Titles and Explanation
(a)
(b)
Debit
II
Credit
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