Crane Company began operations in 2017 and determined its ending inven


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Crane Company began operations in 2017 and determined its ending inventory at cost and at LCNRV at December 31, 2017, and December 31, 2018. This information is presented below. Cost Net Realized Value 12/31/17 318270 296260 12/31/18 44043

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Crane Company began operations in 2017 and determined its ending inventory at cost and at LCNRV at December 31, 2017, and December 31, 2018. This information is presented below. Cost Net Realized Value 12/31/17 318270 296260 12/31/18 440430 422800 Prepare the journal entries required at December 31, 2017, and December 31, 2018, assuming inventory is recorded at LCNRV and a perpetual inventory system using the cost-of-goods-sold method Date Account titles & Explanation debit credit 12/31/17 12/31/18 Prepare journal entries required at December 31, 2017, and December 31, 2018, assuming inventory is recorded at cost and a perpetual system using the loss method. (Use Recovery of Loss Inventory account.) Date Account titles & Explanation debit credit 12/31/17 12/31/18 Which of the two methods above provides the higher net income in each year?

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