Chapter 9, Problem 9.3E

The following are the inventories for the years 2019, 2020, and 2021 for Parry Company: 1. Assume the inventory that existed at the end of each year was sold in the subsequent year. Prepare journal entries to record ilie lower of cost or net realizable value for each of the following alternatives:                                      a. allowance meiliod, perpetual inventory system                                              b. direct meiliod, perpetual inventory system                                                    2. Next Level Explain an)' differences in inventory valuation and income between the two meiliods.

Question 2 Necks Auto are retailers who purchase and sell vehicle parts & accessories, including batteries. The business uses a perpetual inventory system and began the last quarter of 2020 with merchandise inventory of 10 batteries of the "NeverDie" brand at a total cost of $168,200. The following transactions relating to the "NeverDie" brand were completed during the quarter: October 5 Purchased 15 batteries at a cost of $17,020 each. October 14 October 22 Sold 18 batteries at $22,250 per battery November 10 November 12 November 27 November 30 Purchased 24 batteries at a cost of $18,175 each, but the supplier gave a 4% quantity discount. Sold 15 batteries to Sammy's Auto Ltd and 10 batteries to Chill's Auto Detailing at a price of $23,990 each. Owing to an increased demand for this brand of batteries, 30 batteries were purchased on account at a cost of $17,612 each. In addition, Necks Auto paid $288 in cash on each battery to have the inventory shipped from the vendor's warehouse to…

Hahn Flooring Company’s perpetual inventory records indicate that $1,333,150 of merchandise should be on hand on December 31, 2019. The physical inventory indicates that $1,309,900 of merchandise is actually on hand. Journalize the adjusting entry for the inventory shrinkage for Hahn Flooring Company for the year ended December 31, 2019.Assume that the inventory shrinkage is a normal amount.