A year ago, the net realizable value of ending inventory was $14,000, which exceeded the cost of $12,500. London has determined that the net realizable value of the March 31, 2021, ending inventory is $10,500 Burlington Garden SuppliesIncome Statement (partial)Year Ended January 31, 2021Requirement1. Prepare the company's 2021 income statement through gross profit to showhow the company would apply the lower-of-cost-or-market rule to itsinventories.PrintDone Data TableInventoryCost of Goods SoldSales RevenueBeg bal11,000End bal16,000Bal72,000|Bal117,000PrintDone

Income statement represents the net income or loss that includes the revenues and expenses of the…

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A year ago, the net realizable value of ending inventory was $14,000, which exceeded the cost of $12,500. London has determined that the net realizable value of the March 31,

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

A year ago, the net realizable value of ending inventory was $14,000, which exceeded the cost of $12,500. London has determined that the net realizable value of the March 31, 2021, ending inventory is $10,500

Burlington Garden Supplies
Income Statement (partial)
Year Ended January 31, 2021
Requirement
1. Prepare the company's 2021 income statement through gross profit to show
how the company would apply the lower-of-cost-or-market rule to its
inventories.
Print
Done

Data Table
Inventory
Cost of Goods Sold
Sales Revenue
Beg bal
11,000
End bal
16,000
Bal
72,000|
Bal
117,000
Print
Done

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