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

At July 31, the accountant for the restaurant determines that the current replacement cost of the ending merchandise inventory is $405. 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?

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Date Jul. 9 22 31 Purchases $ 470 220 Cost of Goods Sold $ 270 Merchandise Inventory on Hand $ 470 200 420