PLEASE HELP ASAP!! THANK YOU A physical inventory of Liverpool Company taken at

Question

PLEASE HELP ASAP!! THANK YOU

A physical inventory of Liverpool Company taken at December 31 reveals the following.

Calculate the lower of cost or market for the inventory applied separately to each item.

If the market amount is less than the recorded cost of the inventory, then record the LCM adjustment to the Merchandise Inventory account. (If no entry is required for a particular transaction, select "No journal entry required" in the first account field.)

PLEASE HELP ASAP!! THANK YOU

A physical inventory of Liverpool Company taken at December 31 reveals the following.

Explanation / Answer

Items Units Per unit Total LCM applied to Cost Market Cost Market Individual items audio equipment Receiver 347 $102 $92 $35,394 $31,924 $31,924 CD Player 262 $123 $113 $32,226 $29,606 $29,606 MP3 Player 328 $98 $88 $32,144 $28,864 $28,864 Speaker 206 $43 $54 $8,858 $11,124 $8,858 Video Equipment equipment HandlHeld LCD 472 $127 $152 $59,944 $71,744 $59,944 VCR 283 $86 $95 $24,338 $26,885 $24,338 Camcorders 204 $324 $312 $66,096 $63,648 $63,648 Car Audio Equipment Satellite Radio 187 $86 $72 $16,082 $13,464 $13,464 CD/MP3 Radio 172 $107 $99 $18,404 $17,028 $17,028 Total $293,486 $294,287 $277,674 No. Date General journal Dr. Cr. 1 Dec-31 Cost of goods sold [$293486- $277674] $15,812 To Merchandise inventory $15,812 NOte:-  Adjusting entry for $15812 (Total inventory cost of $293486 - LCM by items of $277674

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