The Ending Inventory of a Company Was $552,000 as Per

question 131

Essay

The ending inventory of a company was $552,000 as per the perpetual inventory records.The current replacement cost for the ending inventory is $547,000.Prepare the journal entry to adjust inventory.

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Definitions:

Par Value

The face value of a bond or stock as stated in the corporate charter or on the certificate.

Fair Value

Fair value is the estimated market price of an asset or liability, reflecting the price at which it could be exchanged between willing parties in an arm's length transaction.

Common Stock

A form of corporate equity ownership, a type of security representing ownership in a corporation.

Acquisition Method

A collection of accounting methods utilized to combine the financial reports of a parent company with those of its subsidiary companies.