Applying LCM, NeCo determines that as of December 31, 19x3 merchandise that originally cost $46,300...
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Applying LCM, NeCo determines that as of December 31, 19x3 merchandise that originally cost $46,300 is now $43,500 at Use the following information for problems #47-48. 00 at market. 47. NeCo determines that the loss is not material enough to warrant disclosure as a line item on its income. Therefore it should.. a. make no entry but disclose the loss in a note on the financial statements b. make no entry and make no disclosure. c. make an entry to reduce retained earnings. make an entry to increase cost of goods sold. 48. Early in 19X4, the market value of NeCo's inventory unexpectedly increases to $47,500. As a result, NeCo should... a. recognize a $4,000 gain. b. recognize a $2,800 gain. c. make no entry but disclose the loss in a note accompanying the financial statements. d, make no entry and make no disclosure
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