It is the end of the year and Katerinos Company is applying the lower-of-cost-or-market (LCM)rule to inventory.The company uses the perpetual inventory system.The company has obtained the following information before any year-end adjustments:
Required:
1.Following U.S.GAAP,prepare the required journal entry at year-end.
2.Following IFRS,prepare the required journal entry at year-end.
Definitions:
Ascending Order
Arranging numbers or other elements in a sequence from the smallest to the largest value.
Approximate
To approximate means to find a value close to the exact answer, often through estimation or rounding.
Real Number
A value that represents a quantity along a continuous line, including both rational and irrational numbers.
True Inequality
A true inequality is an inequality statement that accurately describes the relationship between two values or expressions based on the given conditions.
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