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Question - Bridgeport Company determined its Ending inventory at cost and at lower of cost and net realizable value at December 31, 2015 , 2016, and 2017, as follows:
Cost
Lower of Cost and Net Realizable Value
Dec. 31, 2015
$55,000
Dec. 31, 2016
86,000
77,400
Dec. 31, 2017
78,800
69,000
Prepare the journal entries that are required at December 31, 2016 and 2017, assuming that a periodic inventory system and the direct method of adjusting to NRV are used.
Prepare the journal entries that are required at December 31, 2016 and 2017, assuming that a periodic inventory system is used, with inventory recorded at cost and reduced to NRV through the use of an allowance account.
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