Homework Clinic
Social Science Clinic => Accounting => Topic started by: darbym82 on Feb 18, 2020
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Archer Corp. has the following LIFO perpetual inventory records:
| Date | Purchases | Cost of Goods Sold | Inventory on Hand |
| December 1 | | | $4,150 |
| December 7 | $1,500 | | $5,650 |
| December 18 | | $1,200 | $4,450 |
| December 31 | $1,400 | | $5,850 |
The current replacement cost of the ending inventory is $3,800. To apply the lower-of-cost-or-market rule, the journal entry would be:
◦ Debit Inventory $2,050, credit Cost of Goods Sold $2,050,
◦ Debit Cost of Goods Sold $2,050, credit Inventory $2,050,
◦ Debit inventory $1,200, credit Cost of Goods Sold $1,200
◦ Debit Cost of Goods Sold $1,200, credit Inventory $1,200
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Debit Cost of Goods Sold $2,050, credit Inventory $2,050,
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