Question

Assume prices were stable during the period. The following values were obtained from the inventory records of Harris Company which has a fiscal year ending on December 31:
Inventory, January 1, 2016, LIFO .... $80,000
Inventory, March 31, 2016, LIFO .... 70,000
Required:
1. Under what conditions is Harris’s inventory liquidation not reflected in its first-quarter interim financial statements?
2. Assuming that the liquidation is not to be reflected, what adjusting entry would Harris make and how would you determine the amount?


$1.99
Sales1
Views48
Comments0
  • CreatedOctober 05, 2015
  • Files Included
Post your question
5000