ACC 304 help A Guide to career/Snaptutorial ACC 304 help A Guide to career/Snaptutorial | Page 90

1,245,000
Freight-in
15,000
—
Employee discounts
—
6,000
Net markups
—
45,000
Net markdowns
—
60,000
Sales revenue
—
1,170,000
10.
Which of the following is true of normal shortages?
Under the lower-of-cost-or-market method, the replacement cost of an
inventory item would be used as the designated market value
Which of the following is not a common disclosure for inventories?
The use of a Purchase Discounts account implies that the recorded
cost of a purchased inventory item is its
Hay Company had January 1 inventory of $180,000 when it adopted
dollar-value LIFO. During the year, purchases were $1,080,000 and