Plain Company began its operation in 2021. Information about the ending inventories of the Plain Company is
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Question:
Plain Company began its operation in 2021. Information about the ending inventories of the Plain Company is shown below:
Year | Cost | Designed Market Value |
2021 | $20,000 | $22,000 |
2022 | 30,000 | 25,000 |
2023 | 40,000 | 37,800 |
Required:
Assuming a perpetual inventory system, prepare journal entries for 2021, 2022, and 2023 to record the reduction of the inventory market value using the loss method.
Related Book For
Fundamentals Of Corporate Finance
ISBN: 9780135811603
5th Edition
Authors: Jonathan Berk, Peter DeMarzo, Jarrad Harford
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