Rapid Resources, which uses the FIFO inventory costing method, has the following account balances at May 31, 2017, prior to releasing the financial statements for the year Merchandise Inventory, ending $ 14,500 Cost of Goods Sold 70,000 Sales Revenue 118,000 Rapid has determined that the current re...

Requirement 1 Date Accounts and Explanation Debit Credit May 31 Cost of Goods ...

Rapid Resources, which uses the FIFO inventory costing method, has the following account balances at May 31,

Question:

Rapid Resources, which uses the FIFO inventory costing method, has the following account balances at May 31, 2017, prior to releasing the for the year:
Merchandise Inventory, ending......$ 14,500
Cost of Goods Sold........... 70,000
Sales Revenue.............. 118,000
Rapid has determined that the current replacement cost (current market value) of the May 31, 2017, ending merchandise inventory is $13,500.
Requirements
1. Prepare any adjusting journal entry required from the information given.
2. What value would Rapid report on the at May 31, 2017, for merchandise inventory? Financial Statements
Financial statements are the standardized formats to present the financial information related to a business or an organization for its users. Financial statements contain the historical information as well as current period’s financial... Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...