Alex purchased goods costing ＄1000. She planned to resell the goods at a mark-up rate of 25%. These goods were unsold at the year end and were found to be damaged. Alex estimated that they could be sold for ＄600.
What value should be shown for these goods in the year-end financial statements?
1 )
＄400
＄600
3 )
＄750
4 )
＄1250
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