Question

Splish Company began operations in 2019 and determined its ending inventory at cost and at lower-of-LIFO cost-or-market at December 31, 2019, and December 31, 2020. This information is presented below: Lower-of-Cost-or- Market $358,260 419,900 Cost $378,170 435,650 12/31/19 12/31/20 (a) Prepare the journal entries required at December 31, 2019, and December 31, 2020, assuming that the inventory is recorded at market, and a perpetual inventory system (cost-of-goods-sold method) is used. (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 for the amounts.) Debit Credit Date Account Titles and Explanation 12/31/19 12/31/20 (b) Prepare journal entries required at December 31, 2019, and December 31, 2020, assuming that the inventory is recorded at market under a perpetual system (loss method is used). (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 for the amounts.) Debit Credit Date Account Titles and Explanation 12/31/19

Answer 1

Anseses cost 4 Inveutory at al oee o14 LLOuer cast a Haket at a1 Dee 2e19 Alleecau amaut ueeded to seduce $372170 35 260) 1,910 Tueory to Haskek Cost &Iveuloy al g1Dec s0g0 H35650 Lest Leeser cest or Hakaral a1 Dec gogo 419900) Allocane amæint ucedd do educe Ioueutry 15 750 Recovery peviovely secegnised loss la-b): 4910-15,150 $4160 a) oumaleutrics Date LF Debit 19910 Credit paskaulars cost goods seld Ale To Alloesaua to yedu Tnveubry pr Dec-a 1910 to market eing to vecosd allouaue to vedues iwve gcao Allosauca to veduce Tnveuby tomarkeer$4160 cest goods old Being to xecord a peviouly veegnised 4160 Dec1 3auual eutries Date Los due to mastet decine 4metoy UF Debit 19910 Credif Pashiculars Decs To Alleecaue to vedua Toneubry 191D martet dechue Being to vecosd He loas due 20Allau to veduc Ioweulory to hasketAho To Lass dueto market dechne 4Imventay Being to ecoal vecagnised loss 4,160 460 Dec3 They bott pwvid the Saue NetIucome