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As a result of its annual inventory count, Novak Corp. determined its ending inventory at cost and at lower of cost and net realizable value
As a result of its annual inventory count, Novak Corp. determined its ending inventory at cost and at lower of cost and net realizable value at December 31, 2019, and December 31, 2020. December 31, 2019, was Novaks first year end. This information is as follows:
Cost | Lower of Cost and NRV | |||||
---|---|---|---|---|---|---|
Dec. 31, 2019 | $ | 321,200 | $283,350 | |||
Dec. 31, 2020 | 385,200 | 351,550 |
Prepare the journal entries required at December 31, 2019 and 2020, assuming that the inventory is recorded directly at the lower of cost and net realizable value and a periodic inventory system is used.
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