Rocky bayou golf clubs, which uses the fifo method, has the following account balances at January 31,
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Question:
Rocky bayou golf clubs, which uses the fifo method, has the following account balances at January 31, 2012, prior to releasing the financial statements for the year: inventory balance: $14,000 costs of goods sold balance : $70,000 sales revenue balance : $121,000 rocky bayou has determined that the replacement cost (current market value) of the January 31, 2012, ending inventory is $12,500.
Requirements:
1. Prepare any adjusting journal entry required from the information given.
2. What value would rocky bayou report on the balance sheet at January 31, 2012, for inventory?
Related Book For
Financial and Managerial Accounting
ISBN: 978-0132497978
3rd Edition
Authors: Horngren, Harrison, Oliver
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