Accounting 9706 · AS & A Level · Preparation of financial statements

Preparation of financial statements — practice question

By the year-end, a business holds some damaged goods in inventory. The information given is as follows: (1) The goods were bought for $8500. (2) If the goods are repaired, they may be sold for $10400. The business would need to pay $2000 for repairs and $300 to a salesman. (3) The same quantity of damaged goods may be bought from the supplier for $8200. What is the value of the damaged goods at the year-end?

  • A$8100
  • B$8200
  • C$8400
  • D$8500

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