Question: , Richmond Resources, which uses the FIFO inventory costing method, has the following account balances at July 31, 2025,prior to releasing the financial statements for

Richmond Resources, which uses the FIFO inventory costing method, has the following account balances at

July 31, 2025,prior to releasing the financial statements for the year:

Merchandise Inventory, ending	$14,800
Cost of Goods Sold	71,000
Net Sales Revenue	118,000

.....

Richmond

has determined that the current replacement cost (current market value) of the July 31,2025,ending merchandise inventory is $13,500.

Read the requirements

1.	Prepare any adjusting journal entry required from the information given.
2.	What value would Richmond report on the balance sheet at July 31, 2025, for merchandise inventory?

Requirement 1. Prepare any adjusting journal entry required from the given information. (Record debits first, then credits. Select the explanation on the last line of the journal entry. For situations that do not require an entry, make sure to select "No entry required" in the first cell in the "Accounts" column and leave all other cells blank.)

July

31,

2025,

prior to releasing the financial statements for the year:

Merchandise Inventory, ending	$14,800
Cost of Goods Sold	71,000
Net Sales Revenue	118,000

.....

Richmond

has determined that the current replacement cost (current market value) of the

July

31,

2025,

ending merchandise inventory is

$13,500.

Read the requirements

Date

Accounts and Explanation

Debit

Credit

Jul. 31

which uses the FIFO inventory costing method, has the following account balances at

July

31,

2025,

prior to releasing the financial statements for the year:

Merchandise Inventory, ending	$14,800
Cost of Goods Sold	71,000
Net Sales Revenue	118,000

.....

Richmond

has determined that the current replacement cost (current market value) of the

July

31,

2025,

ending merchandise inventory is

$13,500.

Read the requirements

Date

Accounts and Explanation

Debit

Credit

Jul. 31

which uses the FIFO inventory costing method, has the following account balances at

July

31,

2025,

prior to releasing the financial statements for the year:

Merchandise Inventory, ending	$14,800
Cost of Goods Sold	71,000
Net Sales Revenue	118,000

.....

Richmond

has determined that the current replacement cost (current market value) of the

July

31,

2025,

ending merchandise inventory is

$13,500.

Read the requirements

Date

Accounts and Explanation

Debit

Credit

Jul. 31

which uses the FIFO inventory costing method, has the following account balances at

July

31,

2025,

prior to releasing the financial statements for the year:

Merchandise Inventory, ending	$14,800
Cost of Goods Sold	71,000
Net Sales Revenue	118,000

.....

Richmond

has determined that the current replacement cost (current market value) of the

July

31,

2025,

ending merchandise inventory is

$13,500.

Read the requirements

Date	Accounts and Explanation	Debit	Credit
Jul. 31

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