Question

M. R. Wilson Supplies had merchandise inventory that cost $ 1 comma 900. The market value of the merchandise inventory is $ 1 comma 400. What value should Wilson Supplies show on the balance sheet for merchandise​ inventory? Record the adjusting​ entry, if one is needed. What value should Wilson Supplies show on the balance sheet for merchandise​ inventory? A. $ 1 comma 400 B. $ 1 comma 900 C. $ 500 D. $ 3 comma 300

Answer 1

Answer:

M. R. Wilson Supplies had merchandise inventory that cost $ 1 comma 900. The market value of the merchandise inventory is $ 1 comma 400. What value should Wilson Supplies show on the balance sheet for merchandise​ inventory?

Merchandise inventory value = $ 1 comma 400. Option A

Explanation:

Record the adjusting entry is shown below:

                                              Debit               Credit

Cost of Goods Sold            $1400.00  

Merchandise Inventory                                      $1,400.00

Inventory is usually valued at lower of cost or market value.

Merchandise inventory value = $1,400  

Therefore, option A is correct.