Pronghorn Company determined its ending inventory at cost and at LCNRV at December 31, 2025, December 31, 2026, and December 31, 2027, as shown below. 12/31/26 Cost 12/31/25 $691,400 $691,400 12/31/27 755,300 NRV 954,100 683,900 876,300
Pronghorn Company determined its ending inventory at cost and at LCNRV at December 31, 2025, December 31, 2026, and December 31, 2027, as shown below. 12/31/26 Cost 12/31/25 $691,400 $691,400 12/31/27 755,300 NRV 954,100 683,900 876,300
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 14RE: On January 1 of Year 1, Dorso Company adopted the dollar-value LIFO method of inventory costing....
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Intermediate Accounting 105
Please help with the (b) section of this problem.
Thank you
![(b)
-
Your answer is partially correct.
Prepare the journal entries required at December 31, 2026, and at December 31, 2027, assuming that a perpetual inventory is
recorded at cost and reduced to LCNRV using 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. Record journal entries in the order presented in the problem.)
Date
12/31/26
12/31/27
Account Titles and Explanation
Allowance to Reduce Inventory to NRV
Inventory
Allowance to Reduce Inventory to NRV
Inventory
Debit
71400
77800
Credit
714
778](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F717b76b4-160b-4d09-bf30-5738b03be980%2F52c5305e-cd94-4d53-8a16-6846c06a18df%2Fb0j5bh8_processed.png&w=3840&q=75)
Transcribed Image Text:(b)
-
Your answer is partially correct.
Prepare the journal entries required at December 31, 2026, and at December 31, 2027, assuming that a perpetual inventory is
recorded at cost and reduced to LCNRV using 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. Record journal entries in the order presented in the problem.)
Date
12/31/26
12/31/27
Account Titles and Explanation
Allowance to Reduce Inventory to NRV
Inventory
Allowance to Reduce Inventory to NRV
Inventory
Debit
71400
77800
Credit
714
778
![Pronghorn Company determined its ending inventory at cost and at LCNRV at December 31, 2025, December 31, 2026, and
December 31, 2027, as shown below.
12/31/26
Cost
12/31/25 $691,400 $691,400
12/31/27
755,300
NRV
954,100
683,900
876,300](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F717b76b4-160b-4d09-bf30-5738b03be980%2F52c5305e-cd94-4d53-8a16-6846c06a18df%2Fs9l6v6r_processed.png&w=3840&q=75)
Transcribed Image Text:Pronghorn Company determined its ending inventory at cost and at LCNRV at December 31, 2025, December 31, 2026, and
December 31, 2027, as shown below.
12/31/26
Cost
12/31/25 $691,400 $691,400
12/31/27
755,300
NRV
954,100
683,900
876,300
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