View Policis Current Attempt in Progress Windsor Company began operations in 2020 and determined its ending inventory at cost and at LCNRV at December 31, 2020, and December 31, 2021. This information is presented below 12/31/20 $367,920 12/31/21 12/31/20 Cost 12/31/21 (a) Prepare the journal entries required at December 31, 2020, and December 31, 2021, assuming inventory is recorded at LCNRV and a perpetual inventory system using the cost-of-goods-sold method. Use an allowance account to record net realizable value adjustments. (Credit account ttles are automatically indented when amount is entered Do not indent manually if no entry is required, select "No entry for the occount des and enter for the amounts) 385,050 Date Account Titles and Explanation Net Realizable Value 12/31/20 $344,770 365,940 12/31/21 Date Account Titles and Explanation b) Prepare journal entries required at December 31, 2020, and December 31, 2021, assuming inventory is recorded at LCNRV and a perpetual system using the loss method (Credit account (es are automatically indented when amount is entered Do not Indent many no entry is required, select "No entry for the account tes and enter O for the amounts) Debit (c) Which of the two methods above provides the higher net income in each year? Credit Debit Credit
View Policis Current Attempt in Progress Windsor Company began operations in 2020 and determined its ending inventory at cost and at LCNRV at December 31, 2020, and December 31, 2021. This information is presented below 12/31/20 $367,920 12/31/21 12/31/20 Cost 12/31/21 (a) Prepare the journal entries required at December 31, 2020, and December 31, 2021, assuming inventory is recorded at LCNRV and a perpetual inventory system using the cost-of-goods-sold method. Use an allowance account to record net realizable value adjustments. (Credit account ttles are automatically indented when amount is entered Do not indent manually if no entry is required, select "No entry for the occount des and enter for the amounts) 385,050 Date Account Titles and Explanation Net Realizable Value 12/31/20 $344,770 365,940 12/31/21 Date Account Titles and Explanation b) Prepare journal entries required at December 31, 2020, and December 31, 2021, assuming inventory is recorded at LCNRV and a perpetual system using the loss method (Credit account (es are automatically indented when amount is entered Do not Indent many no entry is required, select "No entry for the account tes and enter O for the amounts) Debit (c) Which of the two methods above provides the higher net income in each year? Credit Debit Credit
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:View Policies
Current Attempt in Progress
Windsor Company began operations in 2020 and determined its ending inventory at cost and at LCNRV at December 31, 2020, and
December 31, 2021. This information is presented below,
Cost
12/31/20 $367,920
385,050
12/31/21
(a) Prepare the journal entries required at December 31, 2020, and December 31, 2021, assuming inventory is recorded at LCNRV and a
perpetual inventory system using the cost-of-goods-soid method. Use an allowance account to record net realizable value adjustments.
(Credit account ttles are automatically indented when amount is entered Do not indent manually if no entry is required, select "No entry for the
account tices and enter for the amounts)
12/31/20
Date Account Titles and Explanation
12/31/21
Net Realizable Value
$344,770
365,940
12/31/20
Date Account Titles and Explanation
12/31/21
b) Prepare journal entries required at December 31, 2020, and December 31, 2021, assuming inventory is recorded at LCNRV and a
perpetual system using the loss method (Credit account tes are automatically indented when amount is entered Do not Indent many no
entry is required, select "No entry for the account ttles and enter 0 for the amounts)
Debit
( Which of the two methods above provides the higher net income in each year?
Credit
Debit
Credit
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