GDL Enterprises has the following account balances at December 31, 2015. The inventory balance was determined using FIFO.

GDL Enterprises has determined that the replacement cost (current market value) of the December 31, 2015, ending inventory is $32,400.
Requirements
1. What value would GDL Enterprises report on the statement of financial position at December 31, 2015, 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.

Transcribed Image Text:

Cost of Goods Sold Sales Revenue Inventory Beg Bal 26,500 End Bal 31,800| Bal Bal 106,000| 176,000