Skysong Inc. uses a perpetual inventory system. At January 1, 2020, inventory was $213,418,700 at both cost and realizable value. At December 31, 2020, the inventory was $284,275,100 at cost and $263,882,200 at realizable value. Prepare the necessary December 31 entry under (a) the cost-of-goods-sold method (b) Loss method.
Skysong Inc. uses a perpetual inventory system. At January 1, 2020, inventory was $213,418,700 at both cost and realizable value. At December 31, 2020, the inventory was $284,275,100 at cost and $263,882,200 at realizable value.
Prepare the necessary December 31 entry under (a) the cost-of-goods-sold method (b) 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 0 for the amounts.)
I have part of this answered but I got one of the accounts wrong. So this is what I'm looking at:
PART A. COGS (debit) & Allowance to reduce inventory NRV (credit)
PART B. Loss due to decline of inventory to NRV debit & ( i had inventory for credit but that was wrong.)
Possible account titles:
- Accounts Payable
- Adjustment to Record Inventory at Cost
- Allowance to Reduce Inventory to Market
- Allowance to Reduce Inventory to NRV
- Biological Assets - Shearing Sheep
- Cash
- Cost of Goods Sold
- Estimated Liability on Purchase Commitments
- Income Summary
- Inventory
- Inventory Over and Short
- Loss Due to Decline of Inventory to NRV
- Loss Due to Market Decline of Inventory
- Loss on Fire
- Notes Payable
- Purchases
- Raw Materials
- Recovery of Loss Due to Market Decline of Inventory
- Recovery of Loss Due to Impairment
- Recovery of Loss Inventory
- Salaries and Wages Expense
- Sales Revenue
- Unrealized Holding Gain or Loss - Equity
- Unrealized Holding Gain or Loss - Income
- Wool Inventory
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