Pearl Inc. uses a perpetual inventory system. At January 1, 2017, inventory was
ID: 2548908 • Letter: P
Question
Pearl Inc. uses a perpetual inventory system. At January 1, 2017, inventory was $215,557,300 at both cost and realizable value. At December 31, 2017, the inventory was $283,513,700 at cost and $259,822,800 at realizable value.
Prepare the necessary December 31 entry under (a) the cost-of-goods-sold method (b) Loss method. (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 0 for the amounts.)
No.
Account Titles and Explanation
Debit
Credit
No.
Account Titles and Explanation
Debit
Credit
(a) (b)Explanation / Answer
a) Journal entry under cost of goods sold method
b) Journal entry under loss method
Date Title Debit Credit Cost of goods sold ($283,513,700-$259,822,800) $ 23,690,900 Inventory $ 23,690,900 (To record inventory at market value)Related Questions
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