Information about Q-mart's inventory appears in the following table. When LCM is applied to the whole...
Information about Q-mart's inventory appears in the following table. When LCM is applied to the whole inventory, the Merchandise Inventory account must be adjusted from the $1,700 recorded cost down to the $1,620 market amount. Demonstrate the required adjusting entry by choosing the correct answer below.
|
Item |
Units |
Cost/ Unit |
Market/ Unit |
Total Cost |
Total Market |
|---|---|---|---|---|---|
|
Bikes: |
|||||
|
Bike A |
10 |
$50 |
$52 |
$500 |
$520 |
|
Bike B |
20 |
$30 |
$28 |
$600 |
$560 |
|
Scooters: |
|||||
|
Scooter A |
10 |
$10 |
$9 |
$100 |
$90 |
|
Scooter B |
25 |
$20 |
$18 |
$500 |
$450 |
|
Totals |
$1,700 |
$1,620 |
Debit Cost of Goods Sold $80.
Credit Cost of Goods Sold $80.
Credit Loss on Inventory $80.
Debit Merchandise Inventory $80.
Homework Answers
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Information about Q-mart's inventory appears in the following
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