Rocky Bayou Golf Clubs, which uses the FIFO method, has the following account balances at July 31, 2012, prior to releasing the financial statements for the year Rocky Bayou has determined that the replacement cost (current market value) of the July 31, 2012, ending inventory is $13,000 Requirement...

Req 1 Journal Entry DATE ACCOUNTS AND EXPLANATIONS P ...

Rocky Bayou Golf Clubs, which uses the FIFO method, has the following account balances at July 31,

Question:

Rocky Bayou Golf Clubs, which uses the FIFO method, has the following account balances at July 31, 2012, prior to releasing the for the year:

Cost of goods sold Inventory Sales revenue Bal 119,000 13,500 68,000 Bal Bal

Rocky Bayou has determined that the replacement cost (current market value) of the July 31, 2012, ending inventory is $13,000.
Requirements
1. Prepare any adjusting journal entry required from the information given.
2. What value would Rocky Bayou report on the balance sheet at July 31, 2012, forinventory?

Ending Inventory
The ending inventory is the amount of inventory that a business is required to present on its balance sheet. It can be calculated using the ending inventory formula Ending Inventory Formula =... Financial Statements
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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...