Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. at december 31, 2020 the selig company has ending

At December 31, 2020 the Selig Company has ending inventory with a historical cost of...

70.2K

Verified Solution

Question

Accounting

image
At December 31, 2020 the Selig Company has ending inventory with a historical cost of $634,000. Assume the company uses the FIFO perpetual inventory system. The expected sales price of the inventory is $617,000. Normal selling costs are $5,000. The normal profit on this inventory is $25,000. Selig uses the loss method to record any inventory adjustments. Which journal entry is required on December 31 to correctly record adjust the ending balance of inventory if the loss method is used? a) Debit Loss due to Decline in Inventory for $22,000 and credit Allowance to Adjust Inventory for $22,000. b) Debit Cost of Goods Sold for $22,000 and credit Inventory for $22,000. c) Debit Loss due to Decline in Inventory for $17,000 and credit Allowance to Adjust Inventory for $17,000. d) Debit Cost of Goods Sold for $17,000 and credit Inventory for $17,000

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

Reread the case on the Golden Gate Bridge at the beginning of Chapter 4 in your...

Psychology
Q

You may use your programming of choice to implement and simulate. Please turn in the...

Electrical Engineering
Q

Photons of light are used to split during photosynthesis A water molecules C oxygen molecules...

Biology
Q

A photosensitive metallic surface has work function Eo If photons of energy 5E0 fall on...

Physics
Q

Determine the point estimate of the population proportion, the margin of error for the following...

Basic Math
Q

an Value Theorem a Find the value s of c guaranteed by the Mean Value...

Calculus
Q

Please answer the questions in detail with a reasoning behind each entry. Thank you so...

Accounting
Q

0 Data Table S 25.00 S 7.60 S 6.00 Sales price per unit: (current...

Accounting
Q

3- How might the vision and mission impact the actions of an organization? ( 6...

Accounting
Q

Based on the screenshot below, does the DOL reflect a high amount of operating leverage...

Accounting
Q

Lombard Company is contemplating the purchase of a new high-speed widget grinder to replace the...

Finance
Q

There is a certain order in which assets and liabilities are recorded in the balance...

Finance