Assuming impairment testing is applied on an individual item basis, the year-end adjusting journal entry will reduce inventory by:

Prepare the journal entry to record the sale of the Elf Jones Inc. shares on March 1, 2024. 

How would the amortization of a bond discount influence the Statement of Financial Position (Balance Sheet) and the Income Statement?

Assume one customer uses 20 loyalty points towards the cash purchase of merchandise.  The merchandise was sold for $300 (which cost the company $225).  Prepare the journal entries that would be recorded by Sterling.

Calculate the gross profit that should be recognized in 2023.           

Management is considering a “switch” from the allowance method to the direct write-off method.  Do you think this is a good idea?  Why or why not? 

Prepare the journal entry to record the purchase of the Grinch Ltd. shares on April 1, 2024. 

What effect did this error have on Sales Revenue on December 31st? 

Prepare a Statement of Retained Earnings for XYZ Corporation for 2024.  Ensure the statement is in the proper format and all required disclosures are provided.

All of the following are situations where the specific identification cost formula would be an appropriate policy choice for inventory valuation, except for: