Crane Company began operations in 2025 and determined its ending inventory at cost and at LCNRV at December 31, 2025, andDecember 31, 2026. This information is presented below.CostNet Realizable Value12/31/25 $354,70012/31/26413,510$331,550394,540(a) Prepare the journal entries required at December 31, 2025, and December 31, 2026, assuming inventory is recorded at LCNRV anda perpetual inventory system using the cost-of-goods-sold method. (List all debit entries before credit entries. Credit account titles areautomatically indented when amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enterO for the amounts. Record journal entries in the order presented in the problem.)DateAccount Titles and ExplanationDebitCredit(b) Prepare journal entries required at December 31, 2025, and December 31, 2026, assuming inventory is recorded at LCNRV and aperpetual system using the loss method. (List all debit entries before credit entries. Credit account titles are automatically indented whenamount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter O for the amounts. Recordjournal entries in the order presented in the problem.)DateAccount Titles and Explanation(c) Which of the two methods above provides the higher net income in each year?DebitCredit

Name: Crane Company began operations in 2025 and determined its ending inve
Uploaded: 2024-03-20T06:32:37.000Z
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Description: Crane Company began operations in 2025 and determined its ending inventory at cost and at LCNRV at December 31, 2025, andDecember 31, 2026. This information is presented below.CostNet Realizable Value12/31/25 $354,70012/31/26413,510$331,550394,540(a