Due to a nationwide recession, PC Worlds merchandise inventory is gathering dust It is now December 31, 2014, and the $162,000 that PC World paid for its ending inventory is $14,000 higher than current replacement cost Before any adjustments at the end of the period, PC World 's Cost of Goods Sold ...

Req 1 PC World should report inventory at the current replacement cos ...

Due to a nationwide recession, PC Worlds merchandise inventory is gathering dust. It is now December 31,

Question:

Due to a nationwide recession, PC World’s merchandise inventory is gathering dust. It is now December 31, 2014, and the $162,000 that PC World paid for its is $14,000 higher than current replacement cost. Before any adjustments at the end of the period, PC World's Cost of Goods Sold account has a balance of $628,000. PC World uses lower of cost or net realizable value to value its .
Requirements
1. What amount should PC World report for inventory on the balance sheet?
2. What amount should PC World report for cost of goods sold?
3. Journalize any required entries.
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 =...