ACC/421-Malone Company determined its ending inventory at cost
P9-3 (LO1) (LCNRV—Cost-of-Goods-Sold and Loss) Malone Company determined itsending inventory at cost and at LCNRV at December 31, 2017, December 31, 2018, andDecember 31, 2019, as shown below.CostNRV12/31/17 $650,000 $650,00012/31/18 780,000 712,00012/31/19 905,000 830,000Instructions (a) Prepare the journal entries required at December 31, 2018, and at December 31, 2019,assuming that a perpetual inventory system and the cost-of-goods-sold method of adjusting toLCNRV is used.(b) Prepare the journal entries required at December 31, 2018, and at December 31, 2019,assuming that a perpetual inventory is recorded at cost and reduced to LCNRV using the lossmethod.
