(SOLVED) Thames Garden Supplies uses a perpetual inventory system Thames


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Thames Garden Supplies uses a perpetual inventory system. Thames Garden Supplies has these account balances at July 31, 2010, prior to making the year-end adjustments:_x0001_A year ago, the replacement cost of ending inventory was $12,000, which exceeded cost of $11,500. Thames Garden Supplies has determined that the replacement cost of the July 31, 2010, ending inventory is $10,800.Requirement1. Prepare Thames Garden Supplies 2010 income statement through gross profit to show how the company would apply the lower-of-cost-or-market rule to itsinventories.

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