to ae Question 4 melt moll (LCNRV–Valuation Account) Presented below is information related to Knight Enterprise Jan. 31 Feb. 28 Mar. 31 Apr. 30 Inventory at cost Inventory at NRV Purchases for the...

Q4

Extracted text: to ae Question 4 melt moll (LCNRV–Valuation Account) Presented below is information related to Knight Enterprise Jan. 31 Feb. 28 Mar. 31 Apr. 30 Inventory at cost Inventory at NRV Purchases for the month $15,000 $15,100 $17,000 15,600 $14,000 14,500 12,600 13,300 17,000 24,000 35,000 26,500 40,000 Sales for the month 29,000 Instructions a. From the information, prepare (as far as the data permit) monthly income statements in column? form for February, March, and April. The inventory is to be shown in the statement at cost; the gai or loss due to NRV market fluctuations is to be shown separately (using a valuation account). b. Prepare the journal entry required to establish the valuation account at January 31 and entries adjust it monthly thereafter.