4. Given the following information for the Network Company: Date December 31, 2018 December 31, 2019 December 31, 2020 Cost $ 800 1,000 Market $ 800 940 1,100 1,060 If the allowance method of recording lower of cost or market is in use, which December 31, 2020 entry is not correct? Loss Due to Market Valuation Allowance to Reduce Inventory to Market b. Allowance to Reduce Inventory to Market Loss Recovery Due to Market Valuation Inventory Income Summary d Income Summary 40 a. 40 20 20 C. 1,100 1,100 1,000 Inventory 1,000

nventory Write-Down The following information is taken from Aden Company's records:   Product Group Units Cost/Unit Market/Unit A 1 600   $1.10   $0.90       B 1 250   1.50   1.55       C 2 200   4.90   5.15       D 2 100   6.50   6.40       E 3 80   25.00   24.60         Required: What is the correct inventory value if the company applies the LCNRV rule to each of the following?

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Answer ALL parts for Gross Profit With Working.Answer In Text.

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TB MC Qu. 05-131 (Algo) A company has the following products... A company has the following products in its ending Inventory. Compute lower of cost or market for inventory applied separately to each product Cost per Market per Unit Unit $ 726 $ 696 $ 526 $ 566 $ 676 $ 701 Product Quantity 10 15 20 Product A Product B Product C

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Partial income statements for Sherwood Company summarized for a four-year period show the following: 2018 2019 2020 2021 $ 2,300,000 1,472,000 $ 2,700,000 1,701,000 $ 2,800,000 1,820,000 $ 3,300,000 2,112,000 Net Sales Cost of Goods Sold Gross Profit $ 828,000 $ 999,000 $ 980,000 $ 1,188,000 An audit revealed that in determining these amounts, the ending inventory for 2019 was overstated by $21,200. The inventory balance on December 31, 2020, was accurately stated. The company uses a periodic inventory system. Required: 1. Restate the partial income statements to reflect the correct amounts, after fixing the inventory error. 2-a. Compute the gross profit percentage for each year (a) before the correction and (b) after the correction. 2-b. Do the results lend confidence to your corrected amounts?

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