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If your company uses the lower-of-cost-or-market rule to value its inventory and original cost is 420 and replacement cost is 365 should the 365 be used on the balance sheet?
Wiki User
∙ 15y ago
Yes, because this is the current value of the inventory.
Wiki User
∙ 15y ago
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Regardless of the inventory cost flow assumption used inventories on the balance sheet are stated at a realizable value b the lower of cost or market c original cost d replacement cost?
replacement cost
Does inventory normally have a credit balance?
No, inventory is an assets, which normal balance is a debit.
Does inventory account have a normal debit balance?
Inventory is an asset account. They normally have a debit balance.
What is the normal balance of the merchandise inventory account?
Merchandise Inventory is an asset account, so the normal balance is Debit.
Inventory on a classified balance sheet?
Inventory is par to current asset at asset side in classified balance sheet as inventory is used within one fiscal year.
What is the purpose of inventory reserve estimates at balance sheet date?
How can be anticipate inventory
Where is inventory is reported in financial statement?
Value of Inventory is an asset on the balance sheet.
Which inventory gets into the balance sheets- opening or closing inventory?
Since it is the balance sheet, which is generally prepared at the "end" of a financial period, it would be your closing inventory that goes onto the balance sheet. Once you have made all your adjusting entries and closing of accounts you prepare a Post Closing Trial Balance to check that all accounts remained balance. Since it is the "end" of the year and you are "closing" your books for the Fiscal Year, all adjusting entries are made, this includes taking inventory to get your closing inventory which goes onto your Post Closing Trial Balance and on your Balance Sheet.
What part of the elements of financial statements does inventory bleong to?
Inventory is part of Balance sheet as well as income statement. Inventory is shown as an asset in balance sheet and as an expense when used in income statement.
Why inflation may restrict the usefulness of the balance sheet as normally presented Examples?
Most of the values are based on historical or original price. The balance sheet does not account for inflation, therefore the numbers will be incorrect when it comes to the actual price of inventory.
Does inventory have a debit or credit balance?
Debit
Normal balance for merchandise inventory?
debit
