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Financial & Managerial Accounting 3rd Edition by Charles Horngren,Harrison, Walter,Suzanne Oliver
Edition 3ISBN: 978-0132962339Financial & Managerial Accounting 3rd Edition by Charles Horngren,Harrison, Walter,Suzanne Oliver
Edition 3ISBN: 978-0132962339 Exercise 50
Applying the lower-of-cost-or-market rule to inventories
Richmond Sporting Goods, which uses the FIFO method, has the following account balances at August 31, 2012, prior to releasing the financial statements for the year:
Richmond has determined that the replacement cost (current market value) of the August 31, 2012, ending inventory is $13,500.
Requirements
1. Prepare any adjusting journal entry required from the information given.
2. What value would Richmond report on the balance sheet at August 31, 2012, for inventory
Richmond Sporting Goods, which uses the FIFO method, has the following account balances at August 31, 2012, prior to releasing the financial statements for the year:
Richmond has determined that the replacement cost (current market value) of the August 31, 2012, ending inventory is $13,500.
Requirements
1. Prepare any adjusting journal entry required from the information given.
2. What value would Richmond report on the balance sheet at August 31, 2012, for inventory
Explanation
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Financial & Managerial Accounting 3rd Edition by Charles Horngren,Harrison, Walter,Suzanne Oliver
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