Accounting 0452 · IGCSE · Valuation of inventory

Valuation of inventory — practice question

Alex bought goods that cost $1000. She intended to resell them with a mark-up rate of $25\%. By the year end, the goods had not been sold and were discovered to be damaged. Alex judged that they could be sold for $600. What value ought to be reported for these goods in the year-end financial statements?

  • A$400
  • B$600
  • C$750
  • D$1250

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