Cash Co. normally takes a physical count of inventory throughout the year. Due to some unexpected circumstances, it is unable to take a physical count at year end. Cash Co. wants to determine its ending inventory using estimates for shrinkage. It may do so if:

Question

Quizplus · Accepted Answer

Under the completed-contract no income is recognized until the project is completed ). the expenses of $2,000,000 are subtracted from the $3,000,000 to produce $1,000,000 income for the year.

Cash Co Normally Takes a Physical Count of Inventory Throughout the the Year