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Pronghorn Company determined its ending inventory at cost and at LCNRV at December 31, 2024, December 31, 2025, and December 31, 2026, as shown below.
Pronghorn Company determined its ending inventory at cost and at LCNRV at December 31, 2024, December 31, 2025, and December 31, 2026, as shown below. Cost 12/31/24 $207,000 12/31/25 363,200 12/31/26 312,900 Lower-of-Cost-or-Net Realizable value $207,000 352,500 294,100 Prepare the journal entries required at December 31, 2025, and at December 31, 2026, assuming that a perpetual inventory system and the cost-of-goods-sold method of adjusting to LCNRV is used. (List all debit entries before credit entries. 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 O for the amounts. Record journal entries in the order presented in the problem.) Date Account Titles and Explanation 12/31/25 Cost of Goods Sold Allowance to Reduce Inventory to NRV 12/31/26 Cost of Goods Sold Allowance to Reduce Inventory to NRV Debit 10700 8100 Credit 10 8
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