Vaughn company developed the following information about its inventories in applying the lower-of-cost-or-net realizable value (lcm) basis in valuing inventories:
net realizable product cost value
a $111000 $119000
b 81000 74000
c 153000 162000

if vaughn applies the lcnrv basis, the value of the inventory reported on the balance sheet would be
(a) $338000.
(b) $355000.
(c) $362000.
(d) $345000.

On june 3, teal company sold to chester company merchandise having a sale price of $2,600 with terms of 2/10, n/60, f.o.b. shipping point. an invoice totaling $91, terms n/30, was received by chester on june 8 from john booth transport service for the freight cost. on june 12, the company received a check for the balance due from chester company. prepare journal entries on the teal company books to record all the events noted above under each of the following bases. (1) sales and receivables are entered at gross selling price. (2) sales and receivables are entered at net of cash discounts.