(Answered) Question - monster company began operations in 2013 and as

Accounting

Question - Monster Company began operations in 2013 and, as presented below, determined its ending inventory at cost and at NRV as of December 31, 2013, December 31, 2014, December 31, 2015.

Date	Cost	Net Realizable Value
12/31/13	$356,000	$349,000
12/31/14	336,000	325,000
12/31/15	316,000	350,000

a. Prepare the journal entries required at 12/31/2013, 12/31/2014, and 12/31/2015 using a contra-asset account, assuming that the inventory is recorded at LCNRV, under a perpetual inventory system using the cost-of -goods -sold method.

b. Prepare the journal entries required at 12/31/2013, 12/31/2014, and 12/31/2015 using a contra-asset account, assuming that the inventory is recorded at LCNRV, under a perpetual inventory system using the loss method.

c. In each year, which of the two methods above provides the higher net income?

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