Tamarisk Inc. uses LIFO inventory costing. At January 1, 2025, inventory was $210,912 at both cost and market value. At December 31, 2025, the inventory was $290,410 at cost and $261,580 at market value. Prepare the necessary December 31 entry under (a) the cost-of-goods-sold method and (b) the loss method. (List all debit entries befor 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.)
Tamarisk Inc. uses LIFO inventory costing. At January 1, 2025, inventory was $210,912 at both cost and market value. At December 31, 2025, the inventory was $290,410 at cost and $261,580 at market value. Prepare the necessary December 31 entry under (a) the cost-of-goods-sold method and (b) the loss method. (List all debit entries befor 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.)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Tamarisk Inc. uses LIFO inventory costing. At January 1, 2025, inventory was $210,912 at both cost and market value. At December
31, 2025, the inventory was $290,410 at cost and $261,580 at market value.
Prepare the necessary December 31 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
Debit
Credit
(a)
Cost of Goods Sold
Allowance to Reduce Inventory to Market
(b)
Loss Due to Market Decline of Inventory
Allowance to Reduce Inventory to Market
28830
28830
28830
28830
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