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G bought some special inventory at s purchase cost of 3k. the customer who ordered the item now cancelled leaving G to dispose the items at a loss of 300
what value should the item be included in statements ?
1- 3k
2-300
3-2700
4-0plus I have one more question and that is , will control account be tested in the exam or is it deducted from the syllabus ? and now supplier statement will be tested in its place?
In future you must ask in the Ask the Tutor Forum if you want me to answer – this forum is for students to help each other.
For your first question, inventory is valued at the lower of cost and net realizable value. Here its cost is $3000 and its realizable value is 2700 (3000 – 300) and therefore it will be included at 2,700.
Control accounts are no longer examinable. Supplier statement reconciliations are examinable. This is all explained in our free lectures. The lectures are a complete free course for Paper FA and cover everything needed to be able to pass the exam well.
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