Berry uses a perpetual The inventories of Berry Company for the years 2 0 1 9 and
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Question:
Berry uses a perpetual
The inventories of Berry Company for the years and are as follows:
Cost
NRV
January $ $
December
December
Required:
Assume the inventory that existed at the end of was sold in Prepare the necessary journal entries at the end of each year to record the correct inventory valuation if Berry uses the:
a direct method
b allowance method
Next Level Explain any differences in inventory valuation and income between the two methods.
Complete the statements below that explain any differences in inventory valuation and income between the two methods.
The two methods produce the same net inventory valuations and have the same effects on net income. At the end of inventory would be valued at
$
under the direct method and
$
under the allowance method. Income would be reduced by
$
after the entry to reduce inventory to market under the direct method and
$
after the entry to reduce inventory to market under the allowance method.
Related Book For
Statistics For The Behavioral Sciences
ISBN: 9781111830991
9th Edition
Authors: Frederick J Gravetter, Larry B. Wallnau
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