prepare lower cost and net realizable value.

prepare two journel entry required

Sheridan Company uses a perpetual inventory system and the FIFO cost formula for valuing inventory. The company is now in the process of comparing the cost of its inventory with its net realizable value. The following data are available at Sheridan Company's year end, December 31: Clothing Net Realizable Units Unit Cost per Unit 85 $8 67 Jewellery Greeting cards 47 Stuffed toys 60 Determine the lower of cost and net realizable value of the ending inventory assuming Sheridan Company applies LCNRV on individual items. Lower of cost and net realizable values e Textbook and Media List of Accounts Prepare the journal entry required, if any, to record the adjustment from cost to net realizable value. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) Account Titles and Explanation (To write down inventory to lower net realizable value.) Sheridan Company uses a perpetual inventory system and the FIFO cost formula for valuing inventory. The company is now in the process of comparing the cost of its inventory with its net realizable value. The following data are available at Sheridan Company's year end, December 31: Units Unit Cost Net Realizable Value per Unit Clothing Jewellery Greeting cards Stuffed toys Determine the lower of cost and net realizable value of the ending inventory assuming Sheridan Company applies LCNRV on individual items. Lower of cost and net realizable value Prepare the journal entry required, if any, to record the adjustment from cost to net realizable value. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry for the account titles and enter O for the amounts.) Account Titles and Explanation Debit (To write down inventory to lower net realizable value.)