Problem 8-8

Bramble Company determined its ending inventory at cost and at lower of cost and net realizable value at December 31, 2018, 2019, and 2020, as follows:

				Lower of Cost and
		Cost		Net Realizable Value
Dec. 31, 2018		$56,000		$56,000
Dec. 31, 2019		83,000		74,700
Dec. 31, 2020		78,800		69,000

Prepare the journal entries that are required at December 31, 2019 and 2020, assuming that a periodic inventory system and the direct method of adjusting to NRV are used. (Credit account titles are automatically indented when the 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.)

Date	Account Titles and Explanation	Debit	Credit
12/31/19
	(To close beginning inventory)
12/31/19
	(To record ending inventory)
12/31/19
	(Year end inventory adjustment)
12/31/20
	(To close beginning inventory)
12/31/20
	(To record ending inventory)
12/31/20
	(Year end inventory adjustment)

SHOW LIST OF ACCOUNTS

Prepare the journal entries that are required at December 31, 2019 and 2020, assuming that a periodic inventory system is used, with inventory recorded at cost and reduced to NRV through the use of an allowance account. (Credit account titles are automatically indented when the 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.)

Date	Account Titles and Explanation	Debit	Credit
12/31/19
	(To close beginning inventory)
12/31/19
	(To record ending inventory)
12/31/19
	(To write down inventory to net realizable value)
12/31/20
	(To close beginning inventory)
12/31/20
	(To record ending inventory)
12/31/20
	(To write down inventory to net realizable value)

SHOW LIST OF ACCOUNTS

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