Solution-Prepare the necessary journal entries at end of

Prepare the necessary journal entries at end of each year

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Reference no: EM133149796

Question - The inventories of Berry Company for the years 2019 and 2020 are as follows:

	Cost	NRV
January 1, 2019	$9,000	$9,000
December 31, 2019	13,000	11,500
December 31, 2020	16,000	14,000

Berry uses a perpetual inventory system and the FIFO inventory cost flow assumption.

Required -

1. Assume the inventory that existed at the end of 2019 was sold in 2020. Prepare the necessary journal entries at the end of each year to record the correct inventory valuation if Berry uses the:

a. direct method

b. allowance method

2. Next Level Explain any differences in inventory valuation and income between the two methods.

Reference no: EM133149796

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Prepare the necessary journal entries at end of each year

Reference no: EM133149796

Reference no: EM133149796

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