Requirements 1. Joumalize any required entries 2. At what amount should the company report merchandise inventory on the balance sheet? 3. At what amount should the company report cost of goods sold on the income statement? 4. Which accounting principle or concept is most relevant to this situation? Print Donie X
Requirements 1. Joumalize any required entries 2. At what amount should the company report merchandise inventory on the balance sheet? 3. At what amount should the company report cost of goods sold on the income statement? 4. Which accounting principle or concept is most relevant to this situation? Print Donie X
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
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Transcribed Image Text:Some of L and M Electronics' merchandise is gathering dust. It is now December 31, 2024, and the current replacement cost of the ending merchandise inventory is $20,000 below the business's cost of the goods, which was $102,000. Before any adjustments at the end of the period, the company's Cost of Goods Sold account has a balance of $370.000.
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Requirement 1. Journalize any required entries (Record debits first, then credits. Select the explanation on the last line of the joumal entry table. 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.)
The required joumal entry would be:
Date
Doc. 31
Accounts and Explanation
Debit
J
l
III
Credit
Requirements
1. Joumalze any required entries.
2. At what amount should the company report merchandise inventary on the
balance sheet?
3. At what amount should the company report cost of goods sold on the income
statement?
4. Which accounting principle or concept is most relevant to this situation?
Print
Done
- X
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