Richmond Sporting Goods, which uses the FIFO method, has the following account balances at August 31, 2012, prior to releasing the financial statements for the year Richmond has determined that the replacement cost (current market value) of the August 31, 2012, ending inventory is $13,500 Requireme...

Richmond Sporting Goods, which uses the FIFO method, has the following account balances at August 31, 2012,

Question:

Richmond Sporting Goods, which uses the FIFO method, has the following account balances at August 31, 2012, prior to releasing the for the year:

Cost of goods sold Inventory Sales revenue 14,500 Bal 117,000 Bal Bal 67,000

Richmond has determined that the replacement cost (current market value) of the August 31, 2012, ending inventory is $13,500.
Requirements
1. Prepare any adjusting journal entry required from the information given.
2. What value would Richmond report on the balance sheet at August 31, 2012, forinventory?

Ending Inventory
The ending inventory is the amount of inventory that a business is required to present on its balance sheet. It can be calculated using the ending inventory formula Ending Inventory Formula =... Financial Statements
Financial statements are the standardized formats to present the financial information related to a business or an organization for its users. Financial statements contain the historical information as well as current period’s financial... Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...

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Question Posted: Dec 16, 2011 07:25 AM

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Richmond Sporting Goods, which uses the FIFO method, has the following account balances at August 31, 2012,

Question:

Cost of goods sold Inventory Sales revenue 14,500 Bal 117,000 Bal Bal 67,000

Step by Step Answer:

Req 1 Journal Entry DATE ACCOUNTS AND EXPLANATIONS PO...View the full answer

Financial and Managerial Accounting

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