Discuss the accounting principle or concept

Assignment Help Accounting Basics
Reference no: EM132019526

Question - Explain GAAP and apply the lower-of-cost-or-market rule to inventories) Great White Trade Mart has recently had lackluster sales. The rate of inventory turnover has dropped, and the merchandise is gathering dust. At the same time, competition has forced Great White's suppliers to lower the prices that Great White will pay when it replaces its inventory. It is now December 31, 2012, and the current replacement cost of Great White's ending inventory is $90,000 below what Great White actually paid for the goods, which was $240,000. Before any adjustments at the end of the period, the Cost of Goods Sold account has a balance of $810,000.

a. What accounting action should Great White take in this situation?

b. Give any journal entry required.

c. At what amount should Great White report Inventory on the balance sheet?

d. At what amount should the company report Cost of Goods Sold on the income statement?

e. Discuss the accounting principle or concept that is most relevant to this situation.

Reference no: EM132019526

Questions Cloud

How did the haitian revolution impact white and black : How did the Haitian Revolution impact white and black Americans? How did it situate the debate over slavery in an international context?
What are the major arguments put forth in these documents : What are the major arguments put forth in these documents and why did the people feel this way?
What investment capitalization rate did investors appear : What investment capitalization rate did investors appear to be using to determine the value of one share of Resource stock
How do we view ourselves as americans : How do we view ourselves as Americans and how do others see us? Explain your response by providing evidence from the readings.
Discuss the accounting principle or concept : Discuss the accounting principle or concept that is most relevant to this situation. Give any journal entry required
Explain how both progressive era politics and imperialism : Explain how both progressive era politics and imperialism during the 1890s and early 1900s shaped both American industry .
Who started the civil war and why : Who started the Civil War and Why? Use the important political context in the decade before the beginning of the American Civil War.
What is the total effect on net income : At the end of the year the securities available for sale portfolio has an aggregate market value of $95,000. What is the total effect on Net Income
Would early american history had been any different : Describe the culture clashes that existed between European settlers and people who were not of European descent living .

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd