Brief Exercise 9-3 No. Account Titles and Explanation Debit Credit Open Show Wor

Question

Brief Exercise 9-3

No.

Account Titles and Explanation

Debit

Credit

Open Show Work

Show List of Accounts

Save for later

Submit Answer

Brief Exercise 9-3

Marin Inc. uses a perpetual inventory system. At January 1, 2017, inventory was $215,774,800 at both cost and realizable value. At December 31, 2017, the inventory was $285,178,200 at cost and $265,331,200 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

(a)

(b)

Click if you would like to Show Work for this question:

Open Show Work

Show List of Accounts

Question Attempts: 0 of 3 used

Save for later

Submit Answer

Explanation / Answer

Particulars Amount Cost 285,178,200 Less: Realisable value -265,331,200 Loss of value 19,847,000 No Date Account Debit Credit (a) Dec 31, 2017 Cost of goods sold 19,847,000 To Inventory 19,847,000 [ Inventory decline in value charged to cost of goods sold] (b) Dec 31, 2017 Inventory loss expense 19,847,000 To Inventory 19,847,000 [ Inventory decline in value charged to inventory loss expense account]

Related Questions

Navigate

• Browse (All)
• Browse B
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.