Question
P9-3 (LO1) (LCNRVCost-of-Goods-Sold and Loss) Malone Company determined its ending inventory at cost and at LCNRV at December 31, 2017, December 31, 2018, and December
P9-3 (LO1) (LCNRVCost-of-Goods-Sold and Loss) Malone Company determined its ending inventory at cost and at LCNRV at December 31, 2017, December 31, 2018, and December 31, 2019, as shown below.
Cost | NRV | |
12/31/17 | $650,000 | $650,000 |
12/31/18 | 780,000 | 712,000 |
12/31/19 | 905,000 | 830,000 |
Instructions
(a)Prepare the journal entries required at December 31, 2018, and at December 31, 2019, assuming that a perpetual inventory system and the cost-of-goods-sold method of adjusting to LCNRV is used.
(b)Prepare the journal entries required at December 31, 2018, and at December 31, 2019, assuming that a perpetual inventory is recorded at cost and reduced to LCNRV using the loss method.
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