Cost of	Merchandise
Date		Purchases	Goods Sold	Inventory on Hand
Feb.	9	$550		$550
	22		$350	200
	28	170		370

Assume that a Prime Burger restaurant has the following perpetual inventory record for hamburger patties:

(Click the icon to view the perpetual inventory record.) A February 28, the accountant for the restaurant determines that the current replacement cost of the ending merchandise inventory is $425. Make any adjusting entry needed to apply the lower-of-cost-or-market rule. Merchandise inventory would be reported on the balance sheet at what value on February 28?

Make any adjusting entry needed to apply the lower-of-cost-or-market rule. (Record debits first, then credits. Exclude explanations from journal entries. For situations that do not require an entry, make sure to select "No entry required" in the first cell in the "Accounts" column and leave all other cells blank.)

Date

Accounts

Debit

Credit

Feb.

28

Merchandise inventory would be reported on the balance sheet at what value on February 28? In this case, Prime Burger's balance sheet would report the inventory as follows:

Prime Burger

Balance Sheet (Partial)

Current Assets: