Question
At Lidia Corporation, the loss method is used and they adjust an allowance account at year-end to document net realizable value adjustments directly to its
At Lidia Corporation, the loss method is used and they adjust an allowance account at year-end to document net realizable value adjustments directly to its inventory. Lidia Corporation began business on January 1st. 2020. Below, the end-of-year details for its only inventory items are listed.
Fiscal year Cost basis Net Realizable Value
2020 $220,000 $205,000
2021 $315,000 $310,000
A: Fill in the chart for the end-of-year adjusting entry for 2020:
| Account Tittle | Debit | Credit |
B: Fill in the chart fir the end-of-year entry for 2021.
| Account Tittle | Debit | Credit |
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Accounting What the Numbers Mean
Authors: David H. Marshall, Wayne W. McManus, Daniel F. Viele,
9th Edition
978-0-07-76261, 0-07-762611-7, 9780078025297, 978-0073527062
