Hi !!! I need some help with part B. Thank you! General JournalGeneral Journal Instructionsb1. Assuming that Charleston Chair Company maintains a periodic inventory system, prepare journal entries for December 31, 2022 to record the reof the inventory to market value using the direct method.12312345Inb2. Assuming that Charleston Chair Company maintains a periodic inventory system, prepare journal entries for December 31, 2022 to record the reof the inventory to market value using the allowance method.6DATE7GENERAL JOURNALDATEACCOUNT TITLEGENERAL JOURNALPOST. REF.ACCOUNT TITLEDEBITPOST. REF.PAGE 1DEBITCREDITPAGE 1CREDIT InstructionsInformation about the ending inventories of Charleston Chair Company, who applies the LIFO method, is shown below:Year202020212022Cost$10,00015,00020,000CurrentReplacement Cost$11,50013,00018,600SellingPrice$12,00014,00024,000Cost ofCompletion$1,0001,5002,200NormalProfit Margin$1,1001,2502,900Required:a. Determine the value of the inventory for each year using the lower of cost or market rule.b. Assuming that Charleston Chair Company maintains a periodic inventory system, prepare journal entries for 2022 to record thereduction of the inventory to market value using:1. the direct method2. the allowance method

The market is regarded as the current replacement cost within the Lower of cost or market basis, not…

Information about the ending inventories of Charleston Chair Company, who applies the LIFO method, is shown below. Selling Price Year 2020 2021 2022 Cost $10,000 15,000 20,000 Current Replacement Cost $11,500 13,000 18,600 $12,000 14,000 24,000 Cost of Completion $1,000 1,500 2,200 Normal Profit Margin $1,100 1,250 2,900 Required: a. Determine the value of the inventory for each year using the lower of cost or market rule. b. Assuming that Charleston Chair Company maintains a periodic inventory system, prepare journal entries for 2022 to record the reduction of the inventory to market value using: 1. the direct method 2. the allowance method

Information about the ending inventories of Charleston Chair Company, who applies the LIFO method, is shown below. Selling Price Year 2020 2021 2022 Cost $10,000 15,000 20,000 Current Replacement Cost $11,500 13,000 18,600 $12,000 14,000 24,000 Cost of Completion $1,000 1,500 2,200 Normal Profit Margin $1,100 1,250 2,900 Required: a. Determine the value of the inventory for each year using the lower of cost or market rule. b. Assuming that Charleston Chair Company maintains a periodic inventory system, prepare journal entries for 2022 to record the reduction of the inventory to market value using: 1. the direct method 2. the allowance method

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter10: Inventory

Section: Chapter Questions

Problem 11MC: Which of the following describes features of a perpetual inventory system? A. Technology is normally...

See similar textbooks

Similar questions

Refer to RE6-5. Assume Longmire uses a perpetual inventory system. Prepare the related journal entries for Longmire Sons.
Perpetual and Periodic Inventory Systems Below is a list of inventory systems options. a. Perpetual inventory system b. Periodic inventory system c. Both perpetual and periodic inventory systems Required: Match each option with one of the following: 1. Only revenue is recorded as sales are made during the period; the cost of goods sold is recorded at the end of the period. 2. Cost of goods sold is determined as each sale is made. 3. Inventory purchases are recorded in an inventory account. 4. Inventory purchases are recorded in a purchases account. 5. Cost of goods sold is determined only at the end of the period by subtracting the cost of ending inventory from the cost of goods available for sale. 6. Both revenue and cost of goods sold are recorded during the period as sales are made. 7. The inventory is verified by a physical count.
( Appendix 6B) Inventory Costing Methods: Periodic LIFO Refer to the information for Filimonov Inc. (p. 337) and assume that the company uses a periodic inventory system. Required: Calculate the cost of goods sold and the cost of ending inventory using the LIFO inventory costing method.
Using the information provided in RE8-4, prepare the journal entry to record the write-down of inventory for Paul Corporation assuming that it uses the allowance method instead of the direct method. Paul Corporation uses FIFO and reports the following inventory information: Assuming Paul uses a perpetual inventory system and the direct method, prepare the journal entry to record the write-down if inventory.
Beginning inventory, purchases, and sales for Item ProX2 are as follows: Assuming a perpetual inventory system and using the first-in, first-out (FIFO) method, determine (a) the cost of merchandise sold on January 25 and (b) the inventory on January 31.
Which type or types of inventory timing system (periodic or perpetual) requires the user to record two journal entries every time a sale is made. A. periodic B. perpetual C. both periodic and perpetual D. neither periodic nor perpetual
( Appendix 6B) Inventory Costing Methods: Periodic FIFO Refer to the information for Filimonov Inc. (p. 337) and assume that the company uses a periodic inventory system. Required: Calculate the cost of goods sold and the cost of ending inventory using the FIFO inventory costing method.
Beginning inventory, purchases, and sales for Item Delta are as follows: Assuming a perpetual inventory system and using the first-in, first-out (FIFO) method, determine (a) the cost of merchandise sold on July 24 and (b) the inventory on July 31.
Beginning inventory, purchases, and sales for Item Gidget are as follows: Assuming a perpetual inventory system and using the last-in, first-out (LIFO) method, determine (a) the cost of merchandise sold on September 27 and (b) the inventory on September 30.
Perpetual inventory using FIFO Assume that the business in Exercise 6-5 maintains a perpetual inventory system, costing by the first-in, first-out method. Determine the cost of goods sold for each sale and the inventory balance after each sale, presenting the data in the form illustrated in Exhibit 3.
( Appendix 6B) Inventory Costing Methods: Periodic Inventory Systems. Refer to the information for Tyler Company in Brief Exercise 6-35 and assume that the company uses the periodic inventory system. Required: Calculate the cost of goods sold and the cost of ending inventory using the FIFO, LIFO, and average cost methods. ( Note: Use four decimal places for per-unit calculations and round all other numbers to the nearest whole dollar.)
Beginning inventory, purchases, and sales for Item Zebra 9x are as follows: Assuming a perpetual inventory system and using the last-in, first-out (LIFO) method, determine (a) the cost of merchandise sold on April 27 and (b) the inventory on April 30.