80.2K

Verified Solution

Link Copied!

fill in the blanks and chart

Great White Trade Mart has recently had lackluster sales. The rate of mventory turnover has dropped, and the merchandise is gathering dust. At the same time. competition has forced Great White's suppliers to lower the prices that Great White will pay when it replaces its inventory, it is now December 31 , 2021 , and the net realizable value of Great White's ending inventory is $90,000 below what the company actually padd for the goods, which was $230,000. Before any ad,ustments at the end of the period, the Cost of Goods Sold account has a balance of $770,000 Read the reguirements: Requirement a. What accounting action should Great White take in this situation? Great White should apply the to account for inventories. The net realizable value of ending inventory is Great Whife's actial cost, so Great White must write the inventory to net realizable value. Requirement b. Give any journal entry required. (Record debits first, then credits. Exclude axplanations from any journal entries, if no antry is required, seiect Nio antry required" in the first cell in the "Accounts" column and leave ail other fields blank.) Requirement c. At what arnount should the company report Inventory on the balance sheet? Great While should report inventory on the balance sheet at Great White Trade Mart has recently had lackluster sales. The rate of imventory fumover has dropped, and the merchanidise is gathering dust. At the same ime. competition has forced Great Whites suppliers to lower the prices that Great White will pay when it replaces its imventory. It is now Decerber 31,2021 , and the net realizable value of Great White's ending invontory is $90,000 below what the company actually paid for the goods, which was $230,000. Befors any adjuaterenta at the end of the period, the Cost of Goods sold account has a balance of $770,000 Read the reguirements Requirement a. What acoounting action should Great White take in this situation? Great White should apply the to account for inventories. The net realizable value of ending inventory is Great Whiters achual fions from any joumal entries. If ne entry is roquired, select TNo antry Requirement c. At what amount should the company report inventory on the balance sheet? Great White should report inventory on the balance sheet at Great White Trade Mat has recently had lackluster sales. The rate of inventory turnover has dropped, and the merchandise is gathering dust, At the same time. compebition has forced Great White's suppliers to lower the prices that Great White will pay when it replaces its inventory. It is now December 31,2021 , and the net realizable value of Great White's ending inventory is $90,000 bolow what the company actually paid for the goods, which was $230,000. Before any adjustments at the end of the poriod, the Cost of Goods Sold acoount has a balance of $770,000. Read the reguiremonts. Requirement a. What accounting action should Great White take in this situation? Great White should apply the to account for inventories. The net realizable value of ending inventory is Great White's actual cost, so Great White must write the inventory to net realizable value. Requirement b. Give any joumal entry required. (Record debits first, then credits. Exclude explanations from any journal entries. If no required" in the first cell in the "Accounts" column and leave all other fields blank.) Requirement c. At what amount should the company report Inventory on the balance sheet? Great White should report inventory on the balance sheet at Great White Trade Mart has recently had lackluster sales. The rate of inventory turnover has dropped, and the merchandise is gathering dust. At the same fime, competition has forced Great White's suppliers to lower the prices that Great White will pay when it replaces its inventory. it is now December 31 , 2021 , and the net realizable value of Great White's ending inventory is $90,000 below what the company actually paid for the goods, which was $230,000. Before any adjustments at the and of the period, the Cost of Goods Sold account has a balance of $770,000 Road the roauirements. Requirement a. What accounting action should Great White take in this situabion? Great White should apply the to account for inventories. The net realizable value of ending inventory is Grest Whites actuat cest. so Groat White must write the inventory to net realizable value. itions from any journal entries. If no antry is required, selact "No entry Requirement c. At what amount should the company report inventory on the balance sheet? Great White Trade Mart has recently had lackluster sales. The rate of inventory tumover has dropped, and the merchandise is gathering dust. At the same time. competition has forced Great White's suppleers to lower the prices that Great White will pay when it roplaces its inyentory. It is now December 31 , 2021 , and the net realzable value of Great White's ending inventory is $90,000 below what the company actually paid for the goods, which was $230,000. Before any adfuatments at the end of the period, the Cost of Goods Sold account has a balance of $770,000 Read the requisements Requirement c. At what amount should the company report Inventory on the balance shoet? Great White should report inventory on the balance sheet at Requirement d. At what amount should the company report Cost of Goods Sold on the income statement? Great White should roport Cost of Goods Sold on the income statement at Requirement e. Discuss the aocounting peinciple or concept that is most relevant to this situation. is the reason to account for inventory using inventory at the most realiste and transparent amount. Vvanzatie vaiue or Great White's ending inventory is $90,000 below what the company actually paid for the goods, which. It is now December 31 , 2021 , and the net and of the period, the Cost of Goods Sold account has a balance of $770,000 Read the teguirements, Great White Trade Mart has recenty had lackluster sales. The rate of inventory fumover has dropped, and the mercharidise is gathering dust At the same time. competition has forsed Great Whaze's suppliers to lower the prices that Great White will pay when it replaces ifs inventory it is now December 31 , 2021 , and the net. realizable value of Great White's ending imventory is $90.000 below what the company actually paid for the goods, which was $230,000. Before any adjustiments at the end of the period, the Cost of Goods sold acoount has a balance of $770,000 Read the requirnments. competition has forced Great White's suppliers to lower the prices that Great White will pay when it replaces its inventory, it is now December 31 , 2021, and the net realizable value of Great Whites ending inventory is $90,000 below what the company actually paid for the goods, which was $230,000. Before any adjustments at the and of the period, the Cost of Goods Sold account has a balance of $770,000 Read the requitements. Great White Trade Mart has recently had lackluster sales. The rate of inventory turnover has dropped, and the merchandise is gathering dust. At the same time. competition has forced Great White's suppliers to lower the prices that Great White will pay when it roplaces its inventory. It is now December 31,2021 , and the net realizable value of Great White's ending inventory is $90,000 bolow what the company actually paid for the goods, which was $230,000, Before any adjustments at the end of the period, the Cost of Goods Sold account has a balance of $770,000 Read the Requirer Requirements a. What accounting action should Great White take in this situation? b. Give any joumal entry required. c. At what amount should the company report inventory on the balance sheet? d. At what amount should the company report Cost of Goods Sold on the income statement? e. Discuss the accounting principle or concept that is most relevant to this situation. Requirement c. At what amount should the company report inventory on the balance sheet

Answer & Explanation Solved by verified expert

See Answer