WileyPLUS i Kieso, Intermediate Accounting, 16e CALCULATOR PRNTER VERSION RESOUR

Question

WileyPLUS i Kieso, Intermediate Accounting, 16e CALCULATOR PRNTER VERSION RESOURCES Question 1 e7h Vaughn Company began operations in 2017 and determined its ending in 17, and December 31, 2018. This infarmation is presented below. Cost 12/31/17 12/31/18 Net Realizable Value $331,550 394,540 $354,700 413,510 (a) Prepare the journal entries required at December 31, 2017, and December 31, 2018, a (Credit account titles are automatically indented when amount is entored. Do not indent ssuming inventory recorded at LCR RV and a perpetual inventory system using the cost-of-goods-sold method. Quuastion Question Question 11 select "No entry" for the account titles and enter O for the Date Account Titles and Explanation Debit Credit 12/31/17 Dusation 12 12/31/18 Revisw Score (b) Prepare journal entries required at December 31, 2017, and December 31, 2018, assuming inventory is recorded at cost and a perpetual system using the lass method. (Use Recovery of Loss Inventory account.) (Credit account titles are automatically indented when amount is entered. Do not indent manuaily. If no entry is required, select No entry" for the account titles and entar O for Date Account Titles and Explanation Debit Credit 12/31/17 12/31/18 (c) Which of the two methods above provides the higher net income in each year? SAVE FOR LATER Question Attempts: 0 of 6 used

Explanation / Answer

c. Both Methods, LCNRV and Perpetual inventory give the same affect in net income in each year

Date Accounts title Dr Cr a) 12/31/17 cost of goods sold [354700 - 331550] 23150 To Allowance to reduce inventory to Net realisable value 23150 12/31/18 Allowance to reduce inventory to Net realisable value 18970 To cost of goods sold [413510 - 394540] 18970 b) 12/31/17 loss in decline of inventory to Net realisable value 23150 To Allowance to reduce inventory to Net realisable value    23150 12/31/18 Allowance to reduce inventory to Net realisable value 18970 To recovery of loss in inventory 18970

Related Questions

Navigate

• Browse (All)
• Browse W
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.