At the End of the Year,Katerinos Company Is Applying the Lower-Of-Cost-Or-Market

Essay

At the end of the year,Katerinos Company is applying the lower-of-cost-or-market rule to inventory.The company uses the perpetual inventory system.The company has the following data before year-end adjustments:
Required:
1.Following U.S.GAAP,prepare the required journal entry at year-end.The company uses the direct method when applying the lower-of-cost-or-market rule.
2.Following IFRS,prepare the required journal entry at year-end.The company uses the direct method when applying the lower-of-cost-or-market rule.