Account List -

List of Accounts

Assistance Used

• Accounts Payable
• Accounts Receivable
• Allowance to Reduce Inventory to NRV
• Biological Assets
• Buildings
• Cash
• Cost of Goods Sold
• Equipment
• Interest Expense
• Interest Income
• Interest Payable
• Interest Receivable
• Inventory
• Inventory Over and Short
• Land
• Liability for Onerous Contracts
• Loss on Inventory Due to Decline in NRV
• Loss on Purchase Contracts
• No Entry
• Purchase Discounts
• Purchase Discounts Lost
• Purchase Returns and Allowances
• Purchases
• Raw Materials
• Realized Gain or Loss
• Rebate Receivable
• Recovery of Loss on Inventory Due to Decline in NRV
• Retained Earnings
• Sales Returns and Allowances
• Sales Revenue
• Unrealized Gain or Loss

Cullumber Corporation had the following items in inventory as at December 31, 2020: Unit Cost Item No. Quantity NRV A1 140 $3.00 $3.10 B4 120 1.50 0.90 C2 190 9.20 10.40 D3 130 6.60 6.10 Assume that Cullumber uses a periodic inventory system, and that none of the inventory items can be grouped together for accounting purposes. The opening inventory on January 1, 2020, was $3,200 in total. Prepare the year-end adjusting entries required to adjust to the lower of cost or net realizable value using the direct method. (Credit account titles are automatically indented when the 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.) Direct Method: Date Account Titles and Explanation Debit Credit December 31, 2020 Cost of Goods Sold Inventory (To transfer out beginning inventory balance) December 31, 2020 (To record ending inventory at LC and NRV) List of Accounts Prepare the year-end adjusting entries required to adjust to the lower of cost or net realizable value using the indirect method. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter Ofor the amounts.) Indirect Method: Date Account Titles and Explanation Debit Credit December 31, 2020 (To transfer out beginning inventory balance) December 31, 2020 (To record ending inventory at cost) December 31, 2020 (To write-down inventory to lower NRV)