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Swifty Company began operations in 2024 and determined its ending inventory at cost and at lower-of-LIFO cost-or-market at December 31, 2024, and December 31, 2025. This information is presented below. 12/31/24 12/31/25 Date 12/31/24 Cost 12/31/25 $358,190 423,900 Lower-of-Cost-or-Market (a) Prepare the journal entries required at December 31, 2024, and December 31, 2025, assuming that the inventory is recorded at market, and a perpetual inventory system (cost-of-goods-sold method) is used. (List all debit entrie 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. Record journal entries in the order presented in the problem.) $339,480 Cost of Goods Sold 408,920 Account Titles and Explanation Allowance to Reduce Inventory to Market Cost of Goods Sold Allowance to Reduce Inventory to Market Debit 18710 3730 Credit 18710 3730 (b) Prepare journal entries required at December 31, 2024, and December 31, 2025, assuming that the inventory is recorded at market under a perpetual system (loss method is used). (List all debit entries before credit entries. Credit account titles are automatically indented when amount is entered Do not indent manually

Swifty Company began operations in 2024 and determined its ending inventory at cost and at lower-of-LIFO cost-or-market at December 31, 2024, and December 31, 2025. This information is presented below. 12/31/24 12/31/25 Date 12/31/24 Cost 12/31/25 $358,190 423,900 Lower-of-Cost-or-Market (a) Prepare the journal entries required at December 31, 2024, and December 31, 2025, assuming that the inventory is recorded at market, and a perpetual inventory system (cost-of-goods-sold method) is used. (List all debit entrie 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. Record journal entries in the order presented in the problem.) $339,480 Cost of Goods Sold 408,920 Account Titles and Explanation Allowance to Reduce Inventory to Market Cost of Goods Sold Allowance to Reduce Inventory to Market Debit 18710 3730 Credit 18710 3730 (b) Prepare journal entries required at December 31, 2024, and December 31, 2025, assuming that the inventory is recorded at market under a perpetual system (loss method is used). (List all debit entries before credit entries. Credit account titles are automatically indented when amount is entered Do not indent manually

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Swifty Company began operations in 2024 and determined its ending inventory at cost and at lower-of-LIFO cost-or-market at December 31, 2024, and December 31, 2025. This information is presented below. 12/31/24 12/31/25 Date 12/31/24 Cost 12/31/25 $358,190 423,900 (a) Prepare the journal entries required at December 31, 2024, and December 31, 2025, assuming that the inventory is recorded at market, and a perpetual inventory system (cost-of-goods-sold method) is used. (List all debit entrie 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. Record journal entries in the order presented in the problem.) Lower-of-Cost-or-Market $339,480 408,920 Account Titles and Explanation Cost of Goods Sold Allowance to Reduce Inventory to Market Allowance to Reduce Inventory to Market Cost of Goods Sold Debit 18710 3730 Credit 18710 3730 (b) Prepare journal entries required at December 31, 2024, and December 31, 2025, assuming that the inventory is recorded at market under a perpetual system (loss method is used). (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. Record journal entries in the order presented in the problem.)
Transcribed Image Text:Swifty Company began operations in 2024 and determined its ending inventory at cost and at lower-of-LIFO cost-or-market at December 31, 2024, and December 31, 2025. This information is presented below. 12/31/24 12/31/25 Date 12/31/24 Cost 12/31/25 $358,190 423,900 (a) Prepare the journal entries required at December 31, 2024, and December 31, 2025, assuming that the inventory is recorded at market, and a perpetual inventory system (cost-of-goods-sold method) is used. (List all debit entrie 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. Record journal entries in the order presented in the problem.) Lower-of-Cost-or-Market $339,480 408,920 Account Titles and Explanation Cost of Goods Sold Allowance to Reduce Inventory to Market Allowance to Reduce Inventory to Market Cost of Goods Sold Debit 18710 3730 Credit 18710 3730 (b) Prepare journal entries required at December 31, 2024, and December 31, 2025, assuming that the inventory is recorded at market under a perpetual system (loss method is used). (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. Record journal entries in the order presented in the problem.)
(b) Prepare journal entries required at December 31, 2024, and December 31, 2025, assuming that the inventory is recorded at market under a perpetual system (loss method is used). (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. Record journal entries in the order presented in the problem.) Date 12/31/24 12/31/25 Account Titles and Explanation Loss Due to Decline of Inventory to NRV Allowance to Reduce Inventory to NRV Allowance to Reduce Inventory to NRV Loss Due to Decline of Inventory to NRV Debit 4 18710 3730 Credit 18710 3730
Transcribed Image Text:(b) Prepare journal entries required at December 31, 2024, and December 31, 2025, assuming that the inventory is recorded at market under a perpetual system (loss method is used). (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. Record journal entries in the order presented in the problem.) Date 12/31/24 12/31/25 Account Titles and Explanation Loss Due to Decline of Inventory to NRV Allowance to Reduce Inventory to NRV Allowance to Reduce Inventory to NRV Loss Due to Decline of Inventory to NRV Debit 4 18710 3730 Credit 18710 3730
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