Question: I'm doing an online class in Intermideate accounting and cannot get the answer to the following, The following are the inventories for the years 2016,

I'm doing an online class in Intermideate accounting and cannot get the answer to the following,

"The following are the inventories for the years 2016, 2017 and 2018 for Parry Company:"

January 1, 2016 Cost Market

January 1, 2016 $50,000 $50, 000

December 31, 2016 $64,000 $ 60,000

December 31, 2017 $ 71,000 $ 70,000

December 31 2018 $ 75,000 $ 78,000

Assume the inventory that existed at the end of each year was sold in the subsequent year. Prepare journal entries to record the lower of cost or market for each of the following alternatives.

a.Allowance method, perpetual inventory system

b. Direct method, perpetual inventpory system

I tried working it out and I'm not sure I'm doing it correctly. this one just stumped me...

thank you

jim howley

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