It is the end of the year and Katerinos Company is applying the lower-of-cost-or-market (LCM)rule to inventory. The company uses the perpetual inventory system. Katerinos has provided the following information before any year-end adjustments:
Required: Prepare the required journal entry at year-end:
1. Following U.S. GAAP.
2. Following IFRS.

Question

It is the end of the year and Katerinos Company is applying the lower-of-cost-or-market (LCM)rule to inventory. The company uses the perpetual inventory system. Katerinos has provided the following information before any year-end adjustments:
  Required: Prepare the required journal entry at year-end:
1. Following U.S. GAAP.
2. Following IFRS.

Quizplus · Accepted Answer

The Answer of It is the end of the year and Katerinos Company is applying the lower-of-cost-or-market (LCM)rule to inventory. The company uses the perpetual inventory system. Katerinos has provided the following information before any year-end adjustments:
  Required: Prepare the required journal entry at year-end:
1. Following U.S. GAAP.
2. Following IFRS.

It Is the End of the Year and Katerinos Company