Dollar-Value-LIFO: This method shows all the inventory figures at dollar price rather than units. Under this inventory method, the units that are purchased last, are sold first. Thus, it starts from the selling of the units recently purchased and ending with the beginning inventory. Retail inventory method : It takes into account all the retail amounts that is, the current selling prices. Under this method, the goods available for sale, at retail is deducted from the sales, at retail to determine the ending inventory, at retail. To Explain: the advantages of using the dollar-value LIFO method as opposed to the traditional LIFO method.

Question

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Answer 1

Question

Chapter 9, Problem 9.4DMP

1. a.

To determine

Dollar-Value-LIFO: This method shows all the inventory figures at dollar price rather than units. Under this inventory method, the units that are purchased last, are sold first. Thus, it starts from the selling of the units recently purchased and ending with the beginning inventory.

Retail inventory method: It takes into account all the retail amounts that is, the current selling prices. Under this method, the goods available for sale, at retail is deducted from the sales, at retail to determine the ending inventory, at retail.

To Explain: the advantages of using the dollar-value LIFO method as opposed to the traditional LIFO method.

1. b.

To determine

To Explain: the difference in the application of the dollar-value LIFO method and the application of the traditional LIFO method.

2.a.

To determine

To Explain: the treatment of the net mark ups and net markdowns in the calculation of the cost-to-retail percentage used to determine the estimated cost of its ending retail inventories.

2.b.

To determine

To explain: the reason for the retail inventory method of Company H approximates lower of average cost or market.

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Given the solution and accounting question

Salem Enterprises reports its accounts receivable on the balance sheet. The gross receivable balance is $78,000, and the allowance for uncollectible accounts is estimated at 12% of gross receivables. At what amount will accounts receivable be reported on the balance sheet?

Net income for the year is

Answer 2

Question

Chapter 9, Problem 9.4DMP

1. a.

To determine

Dollar-Value-LIFO: This method shows all the inventory figures at dollar price rather than units. Under this inventory method, the units that are purchased last, are sold first. Thus, it starts from the selling of the units recently purchased and ending with the beginning inventory.

Retail inventory method: It takes into account all the retail amounts that is, the current selling prices. Under this method, the goods available for sale, at retail is deducted from the sales, at retail to determine the ending inventory, at retail.

To Explain: the advantages of using the dollar-value LIFO method as opposed to the traditional LIFO method.

1. b.

To determine

To Explain: the difference in the application of the dollar-value LIFO method and the application of the traditional LIFO method.

2.a.

To determine

To Explain: the treatment of the net mark ups and net markdowns in the calculation of the cost-to-retail percentage used to determine the estimated cost of its ending retail inventories.

2.b.

To determine

To explain: the reason for the retail inventory method of Company H approximates lower of average cost or market.

Expert Solution & Answer

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Answer 3

Question

Chapter 9, Problem 9.4DMP

1. a.

To determine

Dollar-Value-LIFO: This method shows all the inventory figures at dollar price rather than units. Under this inventory method, the units that are purchased last, are sold first. Thus, it starts from the selling of the units recently purchased and ending with the beginning inventory.

Retail inventory method: It takes into account all the retail amounts that is, the current selling prices. Under this method, the goods available for sale, at retail is deducted from the sales, at retail to determine the ending inventory, at retail.

To Explain: the advantages of using the dollar-value LIFO method as opposed to the traditional LIFO method.

1. b.

To determine

To Explain: the difference in the application of the dollar-value LIFO method and the application of the traditional LIFO method.

2.a.

To determine

To Explain: the treatment of the net mark ups and net markdowns in the calculation of the cost-to-retail percentage used to determine the estimated cost of its ending retail inventories.

2.b.

To determine

To explain: the reason for the retail inventory method of Company H approximates lower of average cost or market.

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Answer 4

Question

Chapter 9, Problem 9.4DMP

1. a.

To determine

Dollar-Value-LIFO: This method shows all the inventory figures at dollar price rather than units. Under this inventory method, the units that are purchased last, are sold first. Thus, it starts from the selling of the units recently purchased and ending with the beginning inventory.

Retail inventory method: It takes into account all the retail amounts that is, the current selling prices. Under this method, the goods available for sale, at retail is deducted from the sales, at retail to determine the ending inventory, at retail.

To Explain: the advantages of using the dollar-value LIFO method as opposed to the traditional LIFO method.

1. b.

To determine

To Explain: the difference in the application of the dollar-value LIFO method and the application of the traditional LIFO method.

2.a.

To determine

To Explain: the treatment of the net mark ups and net markdowns in the calculation of the cost-to-retail percentage used to determine the estimated cost of its ending retail inventories.

2.b.

To determine

To explain: the reason for the retail inventory method of Company H approximates lower of average cost or market.

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Answer 5

Chapter 9, Problem 9.4DMP

1. a.

To determine

Dollar-Value-LIFO: This method shows all the inventory figures at dollar price rather than units. Under this inventory method, the units that are purchased last, are sold first. Thus, it starts from the selling of the units recently purchased and ending with the beginning inventory.

Retail inventory method: It takes into account all the retail amounts that is, the current selling prices. Under this method, the goods available for sale, at retail is deducted from the sales, at retail to determine the ending inventory, at retail.

To Explain: the advantages of using the dollar-value LIFO method as opposed to the traditional LIFO method.

1. b.

To determine

To Explain: the difference in the application of the dollar-value LIFO method and the application of the traditional LIFO method.

2.a.

To determine

To Explain: the treatment of the net mark ups and net markdowns in the calculation of the cost-to-retail percentage used to determine the estimated cost of its ending retail inventories.

2.b.

To determine

To explain: the reason for the retail inventory method of Company H approximates lower of average cost or market.

Answer 6

Chapter 9, Problem 9.4DMP

1. a.

To determine

Dollar-Value-LIFO: This method shows all the inventory figures at dollar price rather than units. Under this inventory method, the units that are purchased last, are sold first. Thus, it starts from the selling of the units recently purchased and ending with the beginning inventory.

Retail inventory method: It takes into account all the retail amounts that is, the current selling prices. Under this method, the goods available for sale, at retail is deducted from the sales, at retail to determine the ending inventory, at retail.

To Explain: the advantages of using the dollar-value LIFO method as opposed to the traditional LIFO method.

Answer 7

Chapter 9, Problem 9.4DMP

1. a.

To determine

Dollar-Value-LIFO: This method shows all the inventory figures at dollar price rather than units. Under this inventory method, the units that are purchased last, are sold first. Thus, it starts from the selling of the units recently purchased and ending with the beginning inventory.

Retail inventory method: It takes into account all the retail amounts that is, the current selling prices. Under this method, the goods available for sale, at retail is deducted from the sales, at retail to determine the ending inventory, at retail.

To Explain: the advantages of using the dollar-value LIFO method as opposed to the traditional LIFO method.

Answer 8

1. b.

To determine

To Explain: the difference in the application of the dollar-value LIFO method and the application of the traditional LIFO method.

Answer 9

1. b.

To determine

To Explain: the difference in the application of the dollar-value LIFO method and the application of the traditional LIFO method.

Answer 10

2.a.

To determine

To Explain: the treatment of the net mark ups and net markdowns in the calculation of the cost-to-retail percentage used to determine the estimated cost of its ending retail inventories.

Answer 11

2.a.

To determine

To Explain: the treatment of the net mark ups and net markdowns in the calculation of the cost-to-retail percentage used to determine the estimated cost of its ending retail inventories.

Answer 12

2.b.

To determine

To explain: the reason for the retail inventory method of Company H approximates lower of average cost or market.

Answer 13

2.b.

To determine

To explain: the reason for the retail inventory method of Company H approximates lower of average cost or market.

Answer 14

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Answer 15

Expert Solution & Answer

Answer 16

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Answer 17

Ch. 9 - Explain the (a) lower of cost or net realizable...Ch. 9 - What are the various levels of aggregation to...Ch. 9 - Describe the alternative approaches for recording...Ch. 9 - Explain the gross profit method of estimating...Ch. 9 - The Rider Company uses the gross profit method to...Ch. 9 - Explain the retail inventory method of estimating...Ch. 9 - Both the gross profit method and the retail...Ch. 9 - Define each of the following retail terms: initial...Ch. 9 - Explain how to estimate the average cost of...Ch. 9 - Prob. 9.10Q

Solution Summary: The author explains the advantages of using the dollar-value LIFO method as opposed to the traditional method.

Concept explainers

To Explain: the difference in the application of the dollar-value LIFO method and the application of the traditional LIFO method.

To Explain: the treatment of the net mark ups and net markdowns in the calculation of the cost-to-retail percentage used to determine the estimated cost of its ending retail inventories.

To explain: the reason for the retail inventory method of Company H approximates lower of average cost or market.

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Chapter 9 Solutions