Farmington Company uses a perpetual inventory system and values its inventory at lower of cost or market. Its accounting records indicate the following information relating to inventory:
Required:
Prepare the required journal entries at December 31, 2014, and December 31, 2015, to record the inventory at lower of cost or market using the following methods:
a.Direct method
b.Allowance method

Question

Farmington Company uses a perpetual inventory system and values its inventory at lower of cost or market. Its accounting records indicate the following information relating to inventory:  
Required:
Prepare the required journal entries at December 31, 2014, and December 31, 2015, to record the inventory at lower of cost or market using the following methods: 
a.Direct method
b.Allowance method

Quizplus · Accepted Answer

The Answer of Farmington Company uses a perpetual inventory system and values its inventory at lower of cost or market. Its accounting records indicate the following information relating to inventory:  
Required:
Prepare the required journal entries at December 31, 2014, and December 31, 2015, to record the inventory at lower of cost or market using the following methods: 
a.Direct method
b.Allowance method

Farmington Company Uses a Perpetual Inventory System and Values Its