Lower of Cost or Market The following are the inventories for the years 2007, 2008, and 2009 for the Parry Company:
|
Cost |
Market |
|
|
1 Jan 07 |
$50,000 |
$50,000 |
|
31 Dec 07 |
64,000 |
60,000 |
|
31 Dec 08 |
71,000 |
70,000 |
|
31 Dec 09 |
75,000 |
78,000 |
Required
Prepare journal entries to record the lower of cost or market for each of the following alternatives:
1. Allowance method, periodic inventory system
2. Allowance method, perpetual inventory system
3. Direct method, periodic inventory system
4. Direct method, perpetual inventory system