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The inventory records of Frost Company for the years 2016 and 2017 reveal the cost and market of the January 1, 2016, inventory to be
The inventory records of Frost Company for the years 2016 and 2017 reveal the cost and market of the January 1, 2016, inventory to be $125,000. On December 31, 2016, the cost of inventory was $130,000, while the market value was only $128,000. The December 31, 2017, market value of inventory was $140,000, and the cost was only $135,000. Frost uses a perpetual inventory system.
Assume Frost uses the allowance method and a perpetual inventory system.
Prepare the necessary journal entries to record:
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Assume Frost uses the direct method and a perpetual inventory system.
Prepare the necessary journal entries to record:
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