Assume that a Logan Burger restaurant has the following perpetual inventory record for hamburger patties: At July

Question:

Assume that a Logan Burger restaurant has the following perpetual inventory record for hamburger patties:

Merchandise Inventory on Hand Cost of Purchases Goods Sold Date Jul. 9 $ 450 $ 450 180 $ 270 22 390 31 210

At July 31, the accountant for the restaurant determines that the current replacement cost of the ending merchandise inventory is $435. Make any adjusting entry needed to apply the lower-of-cost-or-market rule. Merchandise inventory would be reported on the balance sheet at what value on July 31?

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...