Question
The controller of Utah Corp. has provided you with the following information relating to its inventory: Date Cost Lower of cost and NRV Dec 31/19$274,200$246,000
The controller of Utah Corp. has provided you with the following information relating to its inventory:
DateCostLower of cost and NRV
Dec 31/19$274,200$246,000
Dec 31/20$369,000$333,000
Utah 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 NRV.
Prepare the journal entries that Utah would have prepared for its 2019 and 2020 year ends, assuming that 2019 was its first year of operations.
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Cost-Benefit Analysis Concepts and Practice
Authors: Anthony E. Boardman, David H. Greenberg, Aidan R. Vining, David L. Weimer
5th edition
1108401295, 9781108415996, 1108415997, 978-1108401296
