Homework SourseJournalize these transactions Morrigan Co Has obsolete inven
Journalize these transactions:
Morrigan Co. Has obsolete inventory in stock that was brought for $18,000. The firm decides to lower the value of its inventory in order to reflect the current market value of $10,000, and then to donate to charity 80% of merchandise.
Journalize these transactions:
Morrigan Co. Has obsolete inventory in stock that was brought for $18,000. The firm decides to lower the value of its inventory in order to reflect the current market value of $10,000, and then to donate to charity 80% of merchandise.
Morrigan Co. Has obsolete inventory in stock that was brought for $18,000. The firm decides to lower the value of its inventory in order to reflect the current market value of $10,000, and then to donate to charity 80% of merchandise.
Morrigan Co. Has obsolete inventory in stock that was brought for $18,000. The firm decides to lower the value of its inventory in order to reflect the current market value of $10,000, and then to donate to charity 80% of merchandise.
Solution
ENTRIES-
1)-PROFIT AND LOSS A/C-8000
TO INVENTORY A/C-8000
(BEING STOCK BROUGHT DOWN TO CURRENT MARKET VALUE AND DEBITED TO P/L ACCOUNT)
2)DONATION A/C-6400
TO INVENTORY A/C-6400
(BEING 80% OF INVENTORY GIVEN AS DONATION)
