Richmond Sporting Goods, which uses the FIFO method, has the following account balances at August 31, 2012, prior to releasing the financial statements for the year:
- Inventory Cost of goods sold
- Bal 14,500 Bal 67,000
- Sales revenue
- Bal 117,000
Richmond has determined that the replacement cost (current market value) of the August 31, 2012, ending inventory is $13,500.
1. Prepare any adjusting journal entry required from the information given
2. What value would Richmond report on the balance sheet at August 31, 2012,for inventory?