The Slayton Company Uses a Periodic Inventory System and Values

question 89

Essay

The Slayton Company uses a periodic inventory system and values its inventory at lower of cost or market. Its accounting records indicate the following information relating to inventory:
Required:
Prepare the required journal entries at December 31, 2015, and December 31, 2016, to record the inventory at lower of cost or market using the following methods:
a.Direct method
b.Allowance method

Calculate and interpret the mean in practical scenarios.

Recognize the appropriate measures of central tendency for different types of data.

Understand the properties of the mean and median in symmetric and skewed distributions.

Distinguish between sensitive and less sensitive measures to extreme values in a dataset.

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Definitions:

Overfishing

The depletion of fish stocks due to fishing at a rate that is unsustainable.

Property Rights

Legal rights to possess, use, and dispose of assets including tangible and intangible properties.

Deforested

Areas that have been cleared of trees and converted to non-forest use.

Extraction Cost

All costs associated with extracting a natural resource and readying it for sale.