Question
Question 6.5 (Total: 8 marks; 2 marks per line) The controller of Connect Corp. has provided you with the following information relating to its inventory:
Question 6.5 (Total: 8 marks; 2 marks per line)
The controller of Connect Corp. has provided you with the following information relating to its inventory:
| Date | Cost | Lower of Cost and NRV |
| December 31st, 2019 | $457,000 | $410,000 |
| December 31st, 2020 | $615,000 | $555,000 |
Connect Corp. uses the periodic inventory system, and records its inventory at cost. An allowance account is adjusted at the end of each year to adjust the value of the inventory to the lower of cost and net realizable value.
Required
1. Prepare the journal entries that Connection Corp. would have prepared for its 2019 and 2020 year ends, assuming that 2019 was its first year of operations.
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Cost Accounting A Managerial Emphasis
Authors: Charles T. Horngren, Srikant M.Dater, George Foster, Madhav
13th Edition
8120335643, 136126634, 978-0136126638
