Homework Help: accounting

Posted by Nick on Friday, September 16, 2011 at 12:59pm.

I have tried to figure out how to do this for four days and my textbook does not give an example on how to do this problem.
Lower-of-Cost-or-Market
Corrs Company began operations in 2007 and determined its ending inventory at cost and at lower of cost or market at December 31, 2007, and December 31, 2008. This information is presented below:

Cost Lower of Cost or
Market
12/31/07 $346,000 $327,000
12/31/08 410,000 395,000

Instructions:

a.)Prepare the journal entries required at December 31, 2007 and December 31, 2008, assuming that the inventory is recorded at market, and a perpetual inventory system (direct method) is used.

b.)Prepare journal entries required at December 31, 2007, and December 31, 2008, assuming that the inventory is recorded at cost and an allowance account is adjusted at each year-end under a perpetual system.

c.)Which of the two methods above provides the higher net income in each year?

All I am asking for is somebody to give me an example on how to do this problem after that I should be able to do this.

accounting - SraJMcGin, Friday, September 16, 2011 at 4:25pm
Here are some Accounting Tutorials for you to look through:

http://www.google.com/search?q=accounting+tutorials&ie=utf-8&oe=utf-8&aq=t&rls=org.mozilla:en-US:official&client=firefox-a

Sra
accounting - Nick, Friday, September 16, 2011 at 6:50pm
SraJMcGin,
Thank you for the information, but I still do not know how to set this problem up. The site was no help.

Answer this Question

Related Questions

Trig - How do I solve the following? sec 3 theta/2 = 2 on the interval 0<...
Studing for French Final - I have been studing for the past four days except I ...
please i need help accounting - i have a promblem it gives me the information ...
chemistry - This question I really don't get it. I tried tried tried to ...
Chemistry - Hi Dr. Bob, I am quite stumped on how to figure out when chemical ...
math - im doing corespondence and i tried for days to figure this out and i cant...
Geometry-Solve for x - ok so I have to solve for x in this problem. and I have ...
Survey of Calculus (Algebra too) - For the supply equations, where X is the ...
Math - Ok I need help to figure out how to solve this problem 4 working move ...
Math - I am having trouble figuring out how to do partial derivatives. I have ...

For Further Reading

First Name:
School Subject:
Answer: