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Waterway Inc. uses a perpetual inventory system. At January 1, 2025, inventory was $496,480 at both cost and net realizable value. At December 31, 2025, the inventory was $663,520 at cost and $614,800 at net realizable value. Prepare the entry under (a) the cost-of-goods-sold method and (b) the loss method. (List all debit entries before credit entries. 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 O for the amounts.)

Waterway Inc. uses a perpetual inventory system. At January 1, 2025, inventory was $496,480 at both cost and net realizable value. At December 31, 2025, the inventory was $663,520 at cost and $614,800 at net realizable value. Prepare the entry under (a) the cost-of-goods-sold method and (b) the loss method. (List all debit entries before credit entries. 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 O for the amounts.)

Intermediate Accounting: Reporting And Analysis
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter7: Inventories: Cost Measurement And Flow Assumptions
Section: Chapter Questions
Problem 9RE: RE7-8 Johnson Company uses a perpetual inventory system. On October 23, Johnson purchased 100,000 of...
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Waterway Inc. uses a perpetual inventory system. At January 1, 2025, inventory was $496,480 at both cost and net realizable value. At December 31, 2025, the inventory was $663,520 at cost and $614,800 at net realizable value. Prepare the entry under (a) the cost-of-goods-sold method and (b) the loss method. (List all debit entries before credit entries. 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 (a) No Entry No Entry (b) Inventory Loss Inventory Debit 48720 Credit 48720
Transcribed Image Text:Waterway Inc. uses a perpetual inventory system. At January 1, 2025, inventory was $496,480 at both cost and net realizable value. At December 31, 2025, the inventory was $663,520 at cost and $614,800 at net realizable value. Prepare the entry under (a) the cost-of-goods-sold method and (b) the loss method. (List all debit entries before credit entries. 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 (a) No Entry No Entry (b) Inventory Loss Inventory Debit 48720 Credit 48720
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