Answer:
M. R. Wilson Supplies had merchandise inventory that cost $ 1 comma 900. The market value of the merchandise inventory is $ 1 comma 400. What value should Wilson Supplies show on the balance sheet for merchandise inventory?
Merchandise inventory value = $ 1 comma 400. Option A
Explanation:
Record the adjusting entry is shown below:
Debit Credit
Cost of Goods Sold $1400.00
Merchandise Inventory $1,400.00
Inventory is usually valued at lower of cost or market value.
Merchandise inventory value = $1,400
Therefore, option A is correct.