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value 10 00 points A physical inventory of Liverpool Company taken at December 31 reveals the following. Per Unit Item Units Cost Market Audio equipment Receivers 355 $ 110 $ 100 CD player

value:
10.00 points

A physical inventory of Liverpool Company taken at December 31 reveals the following.

 

    Per Unit
   
Item Units Cost Market
Audio equipment          
Receivers 355 $ 110 $ 100
CD players 270   131   121
MP3 players 336   106   96
Speakers 214   51   62
Video equipment          
Handheld LCDs 490   135   160
VCRs 301   94   103
Camcorders 222   332   320
Car audio equipment          
Satellite radios 195   94   80
CD/MP3 radios 180   115   107

 

Required:
1.

Calculate the lower of cost or market for the inventory applied separately to each item.

   
2.

If the market amount is less than the recorded cost of the inventory, then record the LCM adjustment to the Merchandise Inventory account. (If no entry is required for a particular transaction, select "No journal entry required" in the first account field.)

Jun 24 2020 View more View Less

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