Malone Company determined its ending inventory at cost and at LCNRV at December 31, 2022, December 31,

Question:

Malone Company determined its ending inventory at cost and at LCNRV at December 31, 2022, December 31, 2023, and December 31, 2024, as shown below.


Instructions

a. Prepare the journal entries required at December 31, 2023, and at December 31, 2024, assuming that a perpetual inventory system and the cost-of-goods-sold method of adjusting to LCNRV are used.

b. Prepare the journal entries required at December 31, 2023, and at December 31, 2024, assuming that a perpetual inventory is recorded at cost and reduced to LCNRV using the loss method.

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Related Book For  book-img-for-question

Intermediate Accounting IFRS

ISBN: 9781119607519

4th Edition

Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield

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