Assume that a Mega Burger restaurant has the following perpetual inventory record for hamburger patties: Date Purchases Cost of Goods Sold Merchandise Inventory on Hand Jul. 9 $450 $450 Jul. 22 $280 170 Jul. 31 320 490 At July 31, the accountant for the restaurant determines that the current replacement cost of the ending merchandise inventory is $440. 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? Make any adjusting entry needed to apply the lower-of-cost-or-market rule. (Record debits first, then credits. Exclude explanations from journal entries. 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.) Date Accounts Debit Credit Jul. 31 Merchandise inventory would be reported on the balance sheet at what value on July 31? In this case, Mega Burger's balance sheet would report the inventory as follows: Mega Burger Balance Sheet (Partial) Current Assets:
Assume that a Mega Burger restaurant has the following perpetual inventory record for hamburger patties: Date Purchases Cost of Goods Sold Merchandise Inventory on Hand Jul. 9 $450 $450 Jul. 22 $280 170 Jul. 31 320 490 At July 31, the accountant for the restaurant determines that the current replacement cost of the ending merchandise inventory is $440. 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? Make any adjusting entry needed to apply the lower-of-cost-or-market rule. (Record debits first, then credits. Exclude explanations from journal entries. 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.) Date Accounts Debit Credit Jul. 31 Merchandise inventory would be reported on the balance sheet at what value on July 31? In this case, Mega Burger's balance sheet would report the inventory as follows: Mega Burger Balance Sheet (Partial) Current Assets:
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Topic Video
Question
Assume that a
Mega
Burger restaurant has the following perpetual inventory record for hamburger patties:|
Date
|
Purchases
|
Cost of Goods Sold
|
Merchandise Inventory on Hand
|
|---|---|---|---|
|
Jul. 9
|
$450
|
|
$450
|
|
Jul. 22
|
$280
|
170
|
|
|
Jul. 31
|
320
|
|
490
|
At
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,
the accountant for the restaurant determines that the current replacement cost of the ending merchandise inventory is
$440.
Make any July
31?
Make any adjusting entry needed to apply the lower-of-cost-or-market rule. (Record debits first, then credits. Exclude explanations from journal entries. 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.)
|
Date
|
Accounts
|
Debit
|
Credit
|
|---|---|---|---|
|
Jul. 31
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Merchandise inventory would be reported on the balance sheet at what value on
July
31?
In this case,
Mega
Burger's balance sheet would report the inventory as follows:|
Mega Burger
|
|
|
Balance Sheet (Partial)
|
|
|
Current Assets:
|
|
|
|
|
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