It is the end of the year and Credit Company is applying the lower-of-cost-or-market (LCM) rule to inventory. The company has obtained the following information before any year-end adjustments:
Required:
1. Journalize any required entry.
2. Indicate what the company will report for ending inventory and cost of goods sold and the financial statements where these accounts will appear.

Question

It is the end of the year and Credit Company is applying the lower-of-cost-or-market (LCM) rule to inventory. The company has obtained the following information before any year-end adjustments:
  Required:
1. Journalize any required entry.
2. Indicate what the company will report for ending inventory and cost of goods sold and the financial statements where these accounts will appear.

Quizplus · Accepted Answer

The Answer of It is the end of the year and Credit Company is applying the lower-of-cost-or-market (LCM) rule to inventory. The company has obtained the following information before any year-end adjustments:
  Required:
1. Journalize any required entry.
2. Indicate what the company will report for ending inventory and cost of goods sold and the financial statements where these accounts will appear.

It Is the End of the Year and Credit Company