Question

Clarmont Resources has the following account balances at October 31, 2014. The inventory balance was determined using FIFO.
Clarmont Resources has determined that the replacement cost (current market value) of the October 31, 2014, ending inventory is $38,000.
Requirements
1. What value would Clarmont Resources report on the balance sheet at October 31, 2014, for inventory assuming the company uses the lower of cost or net realizable value rule?
2. Prepare any adjusting journal entry required from the information given.


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  • CreatedJuly 08, 2015
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