Exercise 143 (Part Level Submission) At 12/31/17, the end of Jenner Company\'s f

Question

Exercise 143 (Part Level Submission) At 12/31/17, the end of Jenner Company's first year of business, inventory was $6,100 and $5,100 at cost and at market, respectively Following is data relative to the 12/31/18 inventory of Jenner: Item Per Unit $.65 45 70 .75 90 .45 40 .75 65 85 Selling price is $1.00/unit for all items. Disposal costs amount to 10% of selling price and 'normal. profit is 30% of selling price. There are 1,500 unts of each ten the 12/31/18 inventory. (a) Prepare the entry at 12/31/17 necessary to implement the lower-of-cost-or-market automatically indented when the amount is entered. Do not indent manually Date Account Titles and Explanation 12/31/17 LINK TO TEXT All Rights Reserved A Division of

Explanation / Answer

Answer:

Event

General Journal

Debit $

Credit $

1

Loss due to decline in inventory to market

1000

Allowance to reduce inventory to market

1000

(6100-5100=1000)

Event

General Journal

Debit $

Credit $

1

Loss due to decline in inventory to market

1000

Allowance to reduce inventory to market

1000

(6100-5100=1000)

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