Prepare the journal entry required to establish the valuation account at January 31 and entries to adjust it monthly thereafter. (Credit account titles are automatically indented when amount is...

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Extracted text: Prepare the journal entry required to establish the valuation account at January 31 and entries to adjust it monthly thereafter. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter O for the amounts.) Date Account Titles and Explanation Debit Credit Jan. 31 Loss Due to Decline of Inventory to NRV 540 Inventory Feb. 28 Loss Due to Decline of Inventory to NRV 2160 Inventory Mar. 31 Loss Due to Decline of Inventory to NRV -1188 Inventory Apr. 30 Loss Due to Decline of Inventory to NRV -756 Inventory eTextbook and Media >


Extracted text: Sales Revenue 36250 43750 Cost of Goods Sold Inventory. Beginning 18750 18875 Purchases 21250 i 30000 i Cost of Goods Available 40000 48875 i Inventory, Ending -18875 i -21250 i 21125 i 27625 i Cost of Goods Sold Gross Profit 15125 16125 Gain (loss) due to Market Fluctuations of Inventory -2500 1375 12625 17500 From the information, prepare (as far as the data permit) monthly income statements in columnar form for February, March, and April. The inventory is to be shown in the statement at cost; the gain or loss due to market fluctuations is to be shown separately (using a valuation account). (Enter negative amounts using either a negative sign preceding the number eg. -45 or parentheses es. (45) February March April 36250 43750 50000 18750 18875 21250 21250 30000i 33125 i 40000 48875 i 54375 -18875 i -21250 i -17500 i 21125 i 27625 i 36875 15125 16125 13125 tions of Inventory -2500 1375 875 12625 17500 14000