Using a periodic inventory system, Bertram Company records inventory at lower of cost or NRV...
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Accounting
Using a periodic inventory system, Bertram Company records inventory at lower of cost or NRV using the allowance method. The end-of-the-year journal entries to adjust inventories would include
a. a credit to Allowance to Reduce Inventory for the excess of market over cost value.
b. a debit to Inventory to close ending inventory at market value.
c. a debit to Inventory to close beginning inventory at cost value.
d. a debit to Loss Due to Write-Down of Inventory for the excess of cost over market value.
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