A year ago, the net realizable value of ending inventory was $14,000, which exceeded the cost of $12,500. London has determined that the net realizable value of the March 31, 2021, ending inventory is $10,500 Burlington Garden SuppliesIncome Statement (partial)Year Ended January 31, 2021Requirement1. Prepare the company's 2021 income statement through gross profit to showhow the company would apply the lower-of-cost-or-market rule to itsinventories.PrintDone Data TableInventoryCost of Goods SoldSales RevenueBeg bal11,000End bal16,000Bal72,000|Bal117,000PrintDone

Income statement represents the net income or loss that includes the revenues and expenses of the…

Answered: A year ago, the net realizable value…

A year ago, the net realizable value of ending inventory was $14,000, which exceeded the cost of $12,500. London has determined that the net realizable value of the March 31,

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter6: Cost Of Goods Sold And Inventory

Section: Chapter Questions

Problem 16MCQ: ( Appendix 6B) Refer to the information for Morgan Inc. above. If Morgan uses a periodic inventory...

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Question

A year ago, the net realizable value of ending inventory was $14,000, which exceeded the cost of $12,500. London has determined that the net realizable value of the March 31, 2021, ending inventory is $10,500

Burlington Garden Supplies
Income Statement (partial)
Year Ended January 31, 2021
Requirement
1. Prepare the company's 2021 income statement through gross profit to show
how the company would apply the lower-of-cost-or-market rule to its
inventories.
Print
Done

Data Table
Inventory
Cost of Goods Sold
Sales Revenue
Beg bal
11,000
End bal
16,000
Bal
72,000|
Bal
117,000
Print
Done

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