nti AT&T;? 10:09 PM 82%- Assignment> Open Assignment ASSIGNMENT RESO Brief Exerc

Question

nti AT&T;? 10:09 PM 82%- Assignment> Open Assignment ASSIGNMENT RESO Brief Exercise 9-3 Graded 09- Sheffield Inc. uses a perpetual inventory system. At January 1, 2017, inventory was $211,257,900 at both cost and realizable value. At December 31, 2017, the inventory was $286,249,300 at cost and $262,969,900 at realizable value Leve Submissian) Prepare the necessary December 31 entry under (a) the cost-of-goods-sold method (b) Loss method. (Credit account tities 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 0 for the amounts.) Exercise 9- No. Acceunt Titles and Esplanstion Review Score Objective Click if you would like to Show Work for this question: Ooen Show Work Question Attempts: 0 of 10 used SAVE FOR LATER SUBMIT ANSWER

Explanation / Answer

Solution: No. Account Titles and Explanation Debit Credit (a) Cost of Goods Sold 23,279,400 Allowance to Reduce Inventory to Market 23,279,400 [Notes : Allowance to Reduce Inventory to Market = cost - Realizable value ] = $286,249,300 - $262,969,900 =$23,279,400 (b) Loss Due to Market Decline of Inventory 23,279,400 Allowance to Reduce Inventory to Market 23,279,400 [Notes : Allowance to Reduce Inventory to Market = cost - Realizable value ] = $286,249,300 - $262,969,900 =$23,279,400 Please feel free to ask if anything about above solution in comment section of the question.

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