Assuming no other changes to inventory and using the


Question - The balance sheet value of a firm's inventory is $70,000. Suppose that the firm purchases supplies at a cost of $2,000 and adds them to inventory. A day later, the market value of the recently purchased supplies changes to $3,500.

Assuming no other changes to inventory, and using the historical cost method, what is the final balance sheet value of inventory?

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Accounting Basics: Assuming no other changes to inventory and using the
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