Nutritional foods reports merchandise inventory at the, Ask an Expert

Accounting

Nutritional Foods reports merchandise inventory at the lower of the cost or market. Prior to releasing its financial statements for the year ended March 31,2015, Nutritional's preliminary income statement, before the year end adjustments is as follows:

Sales revenue $121000
Cost of goods sold $49000
Gross Profit $72000

Nutritional has determined that the current replacement cost of ending merchandise inventory is $16000. Cost is $21000.

1. Journalize the adjusting entry for merchandise inventory, if any is required.

2. Prepare a revised partial income statement to show how Nutritional Foods should report sales, cost of goods sold, and gross profit.

View complete question

Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M9954557

Have any Question?Write your Review or question?

Related Questions in Accounting Basics

Question - stellar company manufactures equipment stellars

Question - Stellar Company manufactures equipment. Stellar's products range from simple automated machinery to complex systems containing numerous components. Unit selling prices range from $200,000 to $1,500,000 and are ...

Question - the following transactions are july activities

Question - The following transactions are July activities of Bill's Extreme Bowling, Inc., which operates several bowling centers. a. Bill's collected $21,600 from customers for services related to games played in July. ...

Question - dividend income susan owns shares of stock in a

Question - Dividend Income. Susan owns shares of stock in a corporation. In January 2018, she received a 1099-DIV reporting the following: Total ordinary dividends $526 Qualified dividends included in total dividends 450 ...

Question - machine b the recorded cost of this machine was

Question - Machine B: The recorded cost of this machine was $201,600. Evers estimates that the useful life of the machine is 4 years with a $11,500 salvage value remaining at the end of that time period. Calculate the am ...

Question - a taxpayer purchased land in 2007 for 85000 and

Question - A taxpayer purchased land in 2007 for $85,000 and sold it in 2016 for $75,000 cash. The buyer also assumed the mortgage of $5,000. What is the amount of gain/loss on the sale of the land? $5,000 loss. $5,000 g ...

Question -what is financial statement fraudhow is it

Question - What is financial statement fraud? How is it different from embezzlement and misappropriation? Why might senior management overstate or understate business performance?

Question - on january 1 year 1 homeland entity he signed a

Question - On January 1, year 1, Homeland Entity (HE) signed a 20-year lease contract for an office building. The lease contract calls for HE to make payments of $10,000 at the beginning of each year, with the first paym ...

Question - if someone self employed earns 195000 what is

Question - If someone self employed earns $195,000, what is the total self employment tax liability? What is the self employment tax deduction?

Question - nutty co gourmet snacks currently sells their

Question - Nutty Co. Gourmet Snacks currently sells their Gourmet Deluxe Gift Basket for 53% each. Nutty Co. currently holds 2B percent of the market share for high-end gift baskets. The marketing manager believes that t ...

Accounting information system question -1-identify two

Accounting Information System Question - 1-Identify two strategic decisions that the information in one (or more) of the example dashboards at idashboards.com can help the company make. Be specific when describing these ...

4,153,160 Questions Asked
13,132 Experts
2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Recent Questions

Ask Accounting Basics Expert