On the allowance method its just the date that I need.

The inventories of Berry Company for the years 2016 and 2017 are as follows: Cost $10,000 Market $10,000 January 1, 2016 December 31, 2016 December 31, 2017 13,000 16,000 11,500 14,000 Berry uses a perpetual inventory system. Required: 1. Assume the inventory that existed at the end of 2016 was sold in 2017. Prepare the necessary journal entries at the end of each year to record the correct inventory valuation if Berry uses the: a. direct method b. allowance method 2. Next Level Explain any differences in inventory valuation and income between the two methods. Assume Berry uses the direct method. Prepare the necessary journal entries to record: 1. the correct inventory valuation on December 31, 2016 2. the reduction in inventory when the inventory from December 31, 2016 is sold during 2017 Additional Instructions 3. the correct inventory valuation on December 31, 2017 How does grading work? PAGE 9 GENERAL JOURNAL Score: 68/76 DATE ACCOUNT TITLE POST. REF. CREDIT DEBIT 14,000.00 Dec 31, 2016 Inventory Cost of Goods Sold 14,000.00 Dec 31, 2016 Cost of Goods Sold 1,500.00 1,500.00 Inventory Cost of Goods Sold Dec 31, 2017 2,000.00 Inventory 2,000.00 Points: 13.42 / 15 Assume Berry uses the allowance method. Prepare the necessary journal entries to record: 1. the correct inventory valuation on December 31, 2016 2. the reduction in inventory when the inventory from December 31, 2016 is sold during 2017 Additional Instructions 3. the correct inventory valuation on December 31, 2017 How does grading work? PAGE 9 GENERAL JOURNAL Score: 86/88 POST. REF. DEBIT CREDIT DATE Dec 31, 2016 ACCOUNT TITLE Loss Due to Market Valuation 1,500.00 Allowance to Reduce Inventory to Market 1,500.00 Dec. 31 Cost of Goods Sold 11,500.00 1,500.00 Allowance to Reduce Inventory to Market Inventory 13,000.00 6 Dec 31, 2017 Loss Due to Market Valuation 2,000.00 Allowance to Reduce Inventory to Market 2,000.00 Complete the statements below that explain any differences in inventory valuation and income between the two methods. The two methods produce the same net inventory valuations and have the same effects on net income. At the end of 2017, inventory would be valued at $ under the direct method and $ under the allowance method. Income would be reduced by after the entry to reduce inventory to market under the direct method and $ after the entry to reduce inventory to market under the allowance method. Points: 2/6 The inventories of Berry Company for the years 2016 and 2017 are as follows: Cost $10,000 Market $10,000 January 1, 2016 December 31, 2016 December 31, 2017 13,000 16,000 11,500 14,000 Berry uses a perpetual inventory system. Required: 1. Assume the inventory that existed at the end of 2016 was sold in 2017. Prepare the necessary journal entries at the end of each year to record the correct inventory valuation if Berry uses the: a. direct method b. allowance method 2. Next Level Explain any differences in inventory valuation and income between the two methods. Assume Berry uses the direct method. Prepare the necessary journal entries to record: 1. the correct inventory valuation on December 31, 2016 2. the reduction in inventory when the inventory from December 31, 2016 is sold during 2017 Additional Instructions 3. the correct inventory valuation on December 31, 2017 How does grading work? PAGE 9 GENERAL JOURNAL Score: 68/76 DATE ACCOUNT TITLE POST. REF. CREDIT DEBIT 14,000.00 Dec 31, 2016 Inventory Cost of Goods Sold 14,000.00 Dec 31, 2016 Cost of Goods Sold 1,500.00 1,500.00 Inventory Cost of Goods Sold Dec 31, 2017 2,000.00 Inventory 2,000.00 Points: 13.42 / 15 Assume Berry uses the allowance method. Prepare the necessary journal entries to record: 1. the correct inventory valuation on December 31, 2016 2. the reduction in inventory when the inventory from December 31, 2016 is sold during 2017 Additional Instructions 3. the correct inventory valuation on December 31, 2017 How does grading work? PAGE 9 GENERAL JOURNAL Score: 86/88 POST. REF. DEBIT CREDIT DATE Dec 31, 2016 ACCOUNT TITLE Loss Due to Market Valuation 1,500.00 Allowance to Reduce Inventory to Market 1,500.00 Dec. 31 Cost of Goods Sold 11,500.00 1,500.00 Allowance to Reduce Inventory to Market Inventory 13,000.00 6 Dec 31, 2017 Loss Due to Market Valuation 2,000.00 Allowance to Reduce Inventory to Market 2,000.00 Complete the statements below that explain any differences in inventory valuation and income between the two methods. The two methods produce the same net inventory valuations and have the same effects on net income. At the end of 2017, inventory would be valued at $ under the direct method and $ under the allowance method. Income would be reduced by after the entry to reduce inventory to market under the direct method and $ after the entry to reduce inventory to market under the allowance method. Points: 2/6