Bistro Company incurred a permanent inventory loss of $80, 000 in April 2010 after the March 31, 2010 quarterly financial statements were issued.What amount of this loss should be reflected in the quarterly income statement for the three months ended June 30, 2010?
A)$ 0
B)$20, 000
C)$26, 667
D)$80, 000

Question

Quizplus · Accepted Answer

The entire loss of $80,000 should be reflected in the quarterly income statement for the three months ended June 30, 2010, as it occurred after the March 31, 2010, statements were issued and before the June 30, 2010, statements.

Bistro Company Incurred a Permanent Inventory Loss of $80, 000