For the current year, Parker Games has the following inventory transactions related to its traditional board games. Parker Games uses a periodic inventory system. Date Jan. 1 Mar. 12 Sep. 17 Transaction Beginning inventory Purchase Purchase Units Unit Cost Total Cost $21 16 106 77 47 $2,226 1,232 423 230 $3,881 Jan. 1-Dec. 31 Sales 157 Because of the increasing popularity of electronic video games, Parker Games continues to see a decline in the demand for board games. Sales prices have decreased by over 50% during the year. At the end of the year, Parker estimates the net realizable value of the 73 units of unsold inventory to be $370. 3-a. Determine the amount of ending inventory to report using lower of cost and net realizable value. Lower of Cost and NRV FIFO

For the current year, Parker Games has the following inventory transactions related to its traditional board games. Parker Games uses a periodic inventory system. Date Jan. 1 Mar. 12 Sep. 17 Transaction Beginning inventory Purchase Purchase Units Unit Cost Total Cost $21 16 106 77 47 $2,226 1,232 423 230 $3,881 Jan. 1-Dec. 31 Sales 157 Because of the increasing popularity of electronic video games, Parker Games continues to see a decline in the demand for board games. Sales prices have decreased by over 50% during the year. At the end of the year, Parker estimates the net realizable value of the 73 units of unsold inventory to be $370. 3-a. Determine the amount of ending inventory to report using lower of cost and net realizable value. Lower of Cost and NRV FIFO

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter10: Inventory

Section: Chapter Questions

Problem 8PA: Prepare journal entries to record the following transactions, assuming perpetual inventory updating...

See similar textbooks

Similar questions

Refer to RE6-5. Assume Longmire uses a perpetual inventory system. Prepare the related journal entries for Longmire Sons.
Prepare journal entries to record the following transactions, assuming perpetual inventory updating and first-in, first-out (FIFO) cost allocation. Assume no beginning inventory.
Using the information provided in RE8-4, prepare the journal entry to record the write-down of inventory for Paul Corporation assuming that it uses the allowance method instead of the direct method. Paul Corporation uses FIFO and reports the following inventory information: Assuming Paul uses a perpetual inventory system and the direct method, prepare the journal entry to record the write-down if inventory.
Using the following purchases journal, identify each of the posting references, indicated by a letter, as representing (1) a posting to a general ledger account, (2) a posting to a subsidiary ledger account, or (3) that no posting is required:
(1)Prepare journal entries for both Periodic and Perpetual Inventory Systems and (2) Prepare the Unadjusted Trial Balance for both Inventory Systems.
7. If Greg’s Bicycle Shop chooses to report inventory using LIFO instead of FIFO, record the LIFO adjustment. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.)
From the general journal, record to the accounts payable subsidiary ledger and post to general ledger accounts as appropriate. Assume the perpetual inventory system. (For purposes of this problem, we will ignore posting references in the general journal.) General journal information attached in image and also the t accounts.
Describe in words the journal entries that are made ina perpetual inventory system when inventory is sold oncredit.
Which of the following is incorrect about the perpetual inventory method? a. purchases are recorded as debit to inventory accountb. the entry to record a sale includes a debit to cost of goods sold and a credit to inventoryc. after a physical inventory count, inventory is credited for any missing inventory.d. purchase returns are recorded by debiting accounts payable and crediting purchase returns and allowances
Prepare Journal entries to record the transactions; assuming Bata Pakistan uses Perpetual inventory system. . Prepare Journal entries to record the transactions; assuming Bata Pakistan uses Periodic inventory system.Solutions needed of the attached image immediately thanks.
Which journal entry is correct when there is a sale under a perpetual inventory and FOB shipping point conditions: a. Dr. Merchandise Inventory Cr. Cash b. Dr. Freight-out Cr. Cash c. Dr. Freight-in Cr. Cash d. Dr. Account Payable Cr. Merchandise Inventory
Please assist with (i) - Periodic inventory system and Perpetual inventory system. Thanks