Nutritional Foods reports merchandise inventory at the lower-of-cost-or-market. Prior to releasing its financial statements for the year ended January 31, 2025, Nutritional's preliminary income statement, before the year-end adjustments, appears as follows: (Click the icon to view the preliminary income statement.) Nutritional has determined that the current replacement cost of ending merchandise inventory is $18,000. Cost is $20,000. Read the requirements. Requirement 1. Journalize the adjusting entry for merchandise inventory, if any is required. (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.) Date Accounts and Explanation Debit Credit Jan. 31 Requirements 1. Journalize the adjusting entry for merchandise inventory, if any is required. 2. Prepare a revised partial income statement to show how Nutritional Foods should report sales, cost of goods sold, and gross profit. Print Done - X Data table Nutritional Foods Income Statement (Partial) Year Ended January 31, 2025 Net Sales Revenue Cost of Goods Sold Gross Profit Print $ 116,000 46,000 70,000 $ Done X
Nutritional Foods reports merchandise inventory at the lower-of-cost-or-market. Prior to releasing its financial statements for the year ended January 31, 2025, Nutritional's preliminary income statement, before the year-end adjustments, appears as follows: (Click the icon to view the preliminary income statement.) Nutritional has determined that the current replacement cost of ending merchandise inventory is $18,000. Cost is $20,000. Read the requirements. Requirement 1. Journalize the adjusting entry for merchandise inventory, if any is required. (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.) Date Accounts and Explanation Debit Credit Jan. 31 Requirements 1. Journalize the adjusting entry for merchandise inventory, if any is required. 2. Prepare a revised partial income statement to show how Nutritional Foods should report sales, cost of goods sold, and gross profit. Print Done - X Data table Nutritional Foods Income Statement (Partial) Year Ended January 31, 2025 Net Sales Revenue Cost of Goods Sold Gross Profit Print $ 116,000 46,000 70,000 $ Done X
Chapter1: Financial Statements And Business Decisions
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Transcribed Image Text:Nutritional Foods reports merchandise inventory at the lower-of-cost-or-market. Prior to releasing its financial statements for the year ended January 31, 2025, Nutritional's preliminary income statement, before
the year-end adjustments, appears as follows:
(Click the icon to view the preliminary income statement.)
Nutritional has determined that the current replacement cost of ending merchandise inventory is $18,000. Cost is $20,000.
Read the requirements.
Requirement 1. Journalize the adjusting entry for merchandise inventory, if any is required. (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.)
Date
Accounts and Explanation
Debit
Credit
Jan. 31
Requirements
1. Journalize the adjusting entry for merchandise inventory, if any is required.
2. Prepare a revised partial income statement to show how Nutritional Foods.
should report sales, cost of goods sold, and gross profit.
Print
C
Done
- X
Data table
Nutritional Foods
Income Statement (Partial)
Year Ended January 31, 2025
$
Net Sales Revenue
Cost of Goods Sold
Gross Profit
Print
$
Done
116,000
46,000
70,000
- X
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