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Journalize these transactions: Morrigan Co. Has obsolete inventory in stock that

ID: 2607153 • Letter: J

Question

Journalize these transactions:
Morrigan Co. Has obsolete inventory in stock that was brought for $18,000. The firm decides to lower the value of its inventory in order to reflect the current market value of $10,000, and then to donate to charity 80% of merchandise. Journalize these transactions:
Morrigan Co. Has obsolete inventory in stock that was brought for $18,000. The firm decides to lower the value of its inventory in order to reflect the current market value of $10,000, and then to donate to charity 80% of merchandise.
Morrigan Co. Has obsolete inventory in stock that was brought for $18,000. The firm decides to lower the value of its inventory in order to reflect the current market value of $10,000, and then to donate to charity 80% of merchandise. Morrigan Co. Has obsolete inventory in stock that was brought for $18,000. The firm decides to lower the value of its inventory in order to reflect the current market value of $10,000, and then to donate to charity 80% of merchandise.

Explanation / Answer

ENTRIES-

1)-PROFIT AND LOSS A/C-8000

TO INVENTORY A/C-8000

(BEING STOCK BROUGHT DOWN TO CURRENT MARKET VALUE AND DEBITED TO P/L ACCOUNT)

2)DONATION A/C-6400

TO INVENTORY A/C-6400

(BEING 80% OF INVENTORY GIVEN AS DONATION)