Prepare the cost-of-goods-sold method and the loss method

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Reference no: EM131257398

Kumar Inc. uses a perpetual inventory system. At January 1, 2014, inventory was $214,000 at both cost and market value. At December 31, 2014, the inventory was $286,000 at cost and $265,000 at market value.

Prepare the necessary December 31 entry under (a) the cost-of-goods-sold method and (b) the loss method.

Reference no: EM131257398

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