Dover Company began operations in 2015 and determined its ending inventory at cost and at a LCNRV at December 31, 2015, and December 31, 2016. This information is presented below. Cost Net Realizable Value 12/31/15 £520,000 £485,000 12/31/16 615,000 585,000 Instructions (a) Prepare the journal entries required at December 31, 2015, and December 31, 2016, assuming that the inventory is recorded at LCNRV, using a perpetual inventory system and the cost-of-goods-sold method. (b) Prepare the journal entries required at December 31, 2015, and December 31, 2016, assuming that the inventory is recorded at cost, using a perpetual system and the loss method
Dover Company began operations in 2015 and determined its ending inventory at cost and at a LCNRV at December 31, 2015, and December 31, 2016. This information is presented below.
Cost Net Realizable Value
12/31/15 £520,000 £485,000
12/31/16 615,000 585,000
Instructions
(a) Prepare the
(b) Prepare the journal entries required at December 31, 2015, and December 31, 2016, assuming that the inventory is recorded at cost, using a perpetual system and the loss method
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