Question: Richmond Sporting Goods, which uses the FIFO method, has the following account balances at August 31, 2012, prior to releasing the financial statements for the

Richmond Sporting Goods, which uses the FIFO method, has the following account balances at August 31, 2012, prior to releasing the for the year:

Richmond has determined that the replacement cost (current market value) of the August 31, 2012, ending inventory is $13,500.
Requirements
1. Prepare any adjusting journal entry required from the information given.
2. What value would Richmond report on the balance sheet at August 31, 2012, forinventory?

Cost of goods sold Inventory Sales revenue 14,500 Bal 117,000 Bal Bal 67,000

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