The controller of Wildhorse Corp. has provided you with the following information relating to its inventory: Date Dec. 31/22 Dec. 31/23 Cost $512,700 $690,000 Lower of cost and NRV $460,000 $622,700 Wildhorse uses the periodic inventory system, and records its inventory at cost. An allowance account is adjusted at the end of each year to adjust the value of the inventory to the lower of cost and NRV. Prepare the journal entries that Wildhorse would have prepared for its 2022 and 2023 year ends, assuming that 2022 was its first year of operations. (Credit account titles are automatically indented when the 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. List all debit entries before credit entries.)

The controller of Wildhorse Corp. has provided you with the following information relating to its inventory: Date Dec. 31/22 Dec. 31/23 Cost $512,700 $690,000 Lower of cost and NRV $460,000 $622,700 Wildhorse uses the periodic inventory system, and records its inventory at cost. An allowance account is adjusted at the end of each year to adjust the value of the inventory to the lower of cost and NRV. Prepare the journal entries that Wildhorse would have prepared for its 2022 and 2023 year ends, assuming that 2022 was its first year of operations. (Credit account titles are automatically indented when the 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. List all debit entries before credit entries.)

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

Chapter8: Inventories: Special Valuation Issues

Section: Chapter Questions

Problem 13RE: Refer to the information provided in RE8-4. If Paul Corporations inventory at January 1, 2019, had a...

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