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please explain answer in simplest form and show work Accounting - Chapter 7 - Valuation of Inventories: A Cost Basis Approach (October 2022) 1. Why
please explain answer in simplest form and show work
Accounting - Chapter 7 - Valuation of Inventories: A Cost Basis Approach (October 2022) 1. Why are inventories included in the computation of net income? a. To determine cost of goods sold. b. To determine sales revenue. c. To determine merchandise returns. d. Inventories are not included in the computation of net income Example A - Perpetual Inventory - Beginning inventory was $120,000 and a physical count of ending inventory shows a balance of $180,000 - M inc. purchased on account, $600,000 of merchandise for resale to customers - M Inc. sold on account, inventory with a retail price of $820,000 and a cost basis of $540,000 to a customerStep by Step Solution
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