FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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(b) Prepare journal entries required at December 31, 2024, and December 31, 2025, assuming that the inventory is recorded at
market under a perpetual system (loss method is used). (List all debit entries before credit entries. Credit account titles are automatically
indented when 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. Record journal entries in the order presented in the problem.)
Date
Account Titles and Explanation
Debit
Credit
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Transcribed Image Text:(b) Prepare journal entries required at December 31, 2024, and December 31, 2025, assuming that the inventory is recorded at market under a perpetual system (loss method is used). (List all debit entries before credit entries. Credit account titles are automatically indented when 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. Record journal entries in the order presented in the problem.) Date Account Titles and Explanation Debit Credit
Wildhorse Company began operations in 2024 and determined its ending inventory at cost and at lower-of-LIFO cost-or-market at
December 31, 2024, and December 31, 2025. This information is presented below.
Cost
12/31/24 $380,130
12/31/25
375,650
Lower-of-Cost-or-Market
$359,390
358,630
(a) Prepare the journal entries required at December 31, 2024, and December 31, 2025, assuming that the inventory is recorded at
market, and a perpetual inventory system (cost-of-goods-sold method) is used. (List all debit entries before credit entries. Credit account
titles are automatically indented when 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. Record journal entries in the order presented in the problem.)
expand button
Transcribed Image Text:Wildhorse Company began operations in 2024 and determined its ending inventory at cost and at lower-of-LIFO cost-or-market at December 31, 2024, and December 31, 2025. This information is presented below. Cost 12/31/24 $380,130 12/31/25 375,650 Lower-of-Cost-or-Market $359,390 358,630 (a) Prepare the journal entries required at December 31, 2024, and December 31, 2025, assuming that the inventory is recorded at market, and a perpetual inventory system (cost-of-goods-sold method) is used. (List all debit entries before credit entries. Credit account titles are automatically indented when 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. Record journal entries in the order presented in the problem.)
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