The balance sheet value of a firm's inventory is $50,000. Suppose that the firm purchases supplies at a cost of $4,000 and adds
them to inventory. A day later, the market value of the recently purchased supplies changes to $2,500. Assuming no other changes to inventory, and using the historical cost method, what is the final balance sheet value of inventory?
Since it is given that the inventory of the firm in the balance sheet is $50,000 and the purchase cost of supplies is $4,000 that is added in inventory
Also the market value of the inventory i.e. currently purchased is $2,500
That represents it changes rapidly
So here by using the historical method, the final amount of inventory that should be reported in the balance sheet is
Net sales is the sum of a company's gross(total) sales minus any returned goods, sales allowances and/or discounts. The total amount of revenue on a company's income statement is the net sales.
sole proprietor<span> and his business are a singular entity; his name is the business' legal name. He controls all aspects, assuming all the rewards, but also all the risks. It is an entity with obvious advantages, like creative freedom and making your own schedule, but it also has its </span>challenges<span>.</span>
The amount to be recognized as research and development expense for the year includes the cost of research and development services performed by Key Corp. for Orr, the cost incurred on testing of pre-production prototypes and models as well as the cost of testing in search for new products or process alternatives,
In other words, all costs incurred would be expensed since no of them met the capitalization criteria as per generally acceptable accounting principles
