Goshen City acquires $36,000 of inventory on November 1, 20X5, having held no inventory previously. On December 31, 20X5, the end of Goshen City's fiscal year, a physical count shows $7,000 still in stock. During 20X6, $5,000 of this inventory is used, resulting in a $2,000 remaining balance of supplies on December 31, 20X6 Based on the preceding information, which of the following would be the correct account balances for 20X6 if Goshen City used the purchase method of accounting for inventories? Inventory of Supplies $ 2,000 $ 7,000 $ 2,000 $ 2,000 A. B. C. D. Expenditures $0 $0 Multiple Choice O $5,000 $ 7,000 O Option A Option B Option C
Goshen City acquires $36,000 of inventory on November 1, 20X5, having held no inventory previously. On December 31, 20X5, the end of Goshen City's fiscal year, a physical count shows $7,000 still in stock. During 20X6, $5,000 of this inventory is used, resulting in a $2,000 remaining balance of supplies on December 31, 20X6 Based on the preceding information, which of the following would be the correct account balances for 20X6 if Goshen City used the purchase method of accounting for inventories? Inventory of Supplies $ 2,000 $ 7,000 $ 2,000 $ 2,000 A. B. C. D. Expenditures $0 $0 Multiple Choice O $5,000 $ 7,000 O Option A Option B Option C
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter7: Inventories: Cost Measurement And Flow Assumptions
Section: Chapter Questions
Problem 5RE: Dani Corporation signed a binding commitment on December 2 to purchase inventory for 300,000 cash on...
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