Armstad Company has $1,000 in inventory at the end of December, before any adjusting entries. The inventory is 100 widgets at a cost of $10 each. Armstad sells widgets for $8 each. Jones Company has $2,000 in inventory at the end of December, before any adjusting entries. The inventory is 500 gadgets at a cost of $4 each. Jones sells the gadgets for $9 each. Choose true or false for each of the following statements on the December balance shoot. a. On the December balance sheet. Jones will show inventory of dollar 2,000.
b. On the December balance sheet. Jones will show inventory of dollar 1,000.