Crane Inc. uses a perpetual inventory system. At January 1, 2017, inventory was

Question

Crane Inc. uses a perpetual inventory system. At January 1, 2017, inventory was $213,230,000 at both cost and realizable value. At December 31, 2017, the inventory was $282,649,200 at cost and $260,564,000 at realizable value. Prepare the necessary December 31 entry under (a) the cost-of-goods-sold method (b) Loss method. (Credit account titles are automatically indented when 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.) No. Account Titles and Explanation Debit Credit

Explanation / Answer

a Cost of Goods Sold 22085200 =282649200-260564000        Allowance to Reduce Inventory to Market 22085200 b Loss Due to Market Decline of Inventory 22085200 =282649200-260564000        Allowance to Reduce Inventory to Market 22085200

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