Question
Plain Company began its operation in 2021. Information about the ending inventories of the Plain Company is shown below: Year Cost Designed Market Value 2021
Plain Company began its operation in 2021. Information about the ending inventories of the Plain Company is shown below:
| Year | Cost | Designed Market Value |
| 2021 | $20,000 | $22,000 |
| 2022 | 30,000 | 25,000 |
| 2023 | 40,000 | 37,800 |
Required:
Assuming a perpetual inventory system, prepare journal entries for 2021, 2022, and 2023 to record the reduction of the inventory market value using the loss method.
Step by Step Solution
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Step: 1
Assuming a perpetual inventory system the journal entries to record the reduction of the inventory m...
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Fundamentals Of Corporate Finance
Authors: Jonathan Berk, Peter DeMarzo, Jarrad Harford
5th Edition
0135811600, 978-0135811603
