identify assumptions and concepts and correct entries.

Question

The company used the average cost formula to determine that the cost of merchandise inventory at december 31 was $65,000. on December 31, it would have cost $80,000 to replace the merchandise inventory, so the following entry was made:
Merchandise Inventory (DR.) $15,000
Gain on Inventory (CR.) $15,000

Answer 1

Please try your later post, which I saw first.

Sra

Answer 2

Thank u Sra^_^