Question: Rapid Resources, which uses the FIFO inventory costing method, has the following account balances at May 31, 2017, prior to releasing the financial statements for

Rapid Resources, which uses the FIFO inventory costing method, has the following account balances at May 31, 2017, prior to releasing the for the year:
Merchandise Inventory, ending......$ 14,500
Cost of Goods Sold........... 70,000
Sales Revenue.............. 118,000
Rapid has determined that the current replacement cost (current market value) of the May 31, 2017, ending merchandise inventory is $13,500.
Requirements
1. Prepare any adjusting journal entry required from the information given.
2. What value would Rapid report on the at May 31, 2017, for merchandise inventory?

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