Question: Given the following information regarding merchandise inventory at the end of the fiscal year: Ending inventory at cost $ 34,000 Ending inventory at market $ 33,400 Which of the following is correct? a. No journal entry should be made based upon the information given. b. Inventory should be reported on the balance sheet at $34,000. c. Inventory should be reported on the balance sheet at $33,400. d. A journal entry should be made to recognize a gain of $600.

Question: Given the following information regarding merchandise inventory at the end of the fiscal year: Ending inventory at cost $ 34,000 Ending inventory at market $ 33,400 Which of the following is correct? a. No journal entry should be made based upon the information given. b. Inventory should be reported on the balance sheet at $34,000. c. Inventory should be reported on the balance sheet at $33,400. d. A journal entry should be made to recognize a gain of $600.

Financial Accounting

15th Edition

ISBN:9781337272124

Author:Carl Warren, James M. Reeve, Jonathan Duchac

Publisher:Carl Warren, James M. Reeve, Jonathan Duchac

Chapter6: Accounting For Merchandising Businesses

Section: Chapter Questions

Problem 36E: The following data were extracted from the accounting records of Harkins Company for the year ended...

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