Which of the following amounts would be reported as Merchandise Inventory on the balance sheet of a company if the cost of an item is $120 and the current replacement cost is $100?

Question

Quizplus · Accepted Answer

Merchandise Inventory is reported at the lower of cost or market (LCM) on the balance sheet. Since the current replacement cost ($100) is lower than the cost ($120), the inventory should be reported at $100.

Which of the Following Amounts Would Be Reported as Merchandise