Using the information provided in RE9-4, prepare the journal entries to record the reductions to market for Paul Corporation, assuming that it uses the allowance method instead of the direct method.
In RE9-4, Paul Corporation reports the following inventory information:

Assuming Paul Corporation uses the perpetual inventory system and the direct method prepare the journal entries to record the reductions tomarket.

Market December 31, Year 1 December 31, Year 2 Cost $315,000 300,000 $ $290,000 283,000