Question
Gaylord uses FIFO perpetual inventory costing. At January 1, 2022, inventory was $356,000 at both cost and net realizable value. At December 31, 2022, the
Gaylord uses FIFO perpetual inventory costing. At January 1, 2022, inventory was $356,000 at both cost and net realizable value. At December 31, 2022, the inventory was $453,000 at cost and $426,000 at net realizable value. The company has chosen to not use an allowance account. Prepare the necessary December 31 entry under (a) the cost-of-goods-sold method and (b) the loss method. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)
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