Blossom Inc. uses LIFO inventory costing. At January 1,2020, inventory was $216,195 at both cost and market value. At December 31, 2020, the inventory was $288,276 at cost and $261,320 at market 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 O for the amounts.)
Blossom Inc. uses LIFO inventory costing. At January 1,2020, inventory was $216,195 at both cost and market value. At December 31, 2020, the inventory was $288,276 at cost and $261,320 at market 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 O for the amounts.)
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 21E: Grimstad Company uses FIFO for internal reporting purposes and LIFO for financial reporting and...
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