Copy of Topic 6 Day 1 Practice

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Grand Canyon University *

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Accounting

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May 28, 2024

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Uploaded by ChefMoleMaster3483

P7.2 (LO 2)(Inventory Adjustments) Dimitri Company, a manufacturer of small tools, provided the followin Inventory at December 31, 2025 (based on physical count of goods in Dimitri’s plant, at cost, on December 3 $1,520,000 Accounts payable at December 31, 2025 1,200,000 Net sales (sales less sales returns) 8,150,000 Additional information is as follows. Goods were in transit from a vendor to Dimitri on December 31, 2025. The invoice cost was $76,000, and th Work in process inventory costing $30,000 was sent to an outside processor for plating on December 30, 20 Instructions Inventory Accounts Payable Initial amounts $1,520,000 $1,200,000 Included in the physical count were tools billed to a customer f.o.b. shipping point on December 31, 2025. T shipment was on Dimitri’s loading dock waiting to be picked up by the common carrier. Tools returned by customers and held pending inspection in the returned goods area on December 31, 2025 tools costing $32,000 were inspected and returned to inventory. Credit memos totaling $47,000 were issued Tools shipped to a customer f.o.b. destination on December 26, 2025, were in transit at December 31, 2025 customer on January 2, 2026, Dimitri issued a sales invoice for $42,000. Goods, with an invoice cost of $27,000, received from a vendor at 5:00 p.m. on December 31, 2025, were re not included in the physical count, but the invoice was included in accounts payable at December 31, 2025. Goods received from a vendor on December 26, 2025, were included in the physical count. However, the re December 31, 2025, because the accounts payable copy of the receiving report was lost. On January 3, 2026, a monthly freight bill in the amount of $8,000 was received. The bill specifically related still in the inventory at December 31, 2025. The freight charges were not included in either the inventory or Using the following tabular format, prepare a schedule of adjustments as of December 31, 2025, to the initi effect, if any, of each of the eight transactions on the December 31, 2025, amounts. If the transactions woul

Adjustments—increase (decrease) 1 2 $76,000 $76,000 3 $30,000 4 $32,000 5 $26,000 6 $27,000 7 $56,000 8 $4,000 $8,000 Total adjustments Adjusted amounts $1,715,000 $1,340,000

ng information from its accounting records for the year ended December 31, 2025. 31, 2025) he goods were shipped f.o.b. shipping point on December 29, 2025. 025. Net Sales $8,150,000 These tools had a cost of $31,000 and were billed at $40,000. The 5, were not included in the physical count. On January 8, 2026, the d to the customers on the same date. 5, and had a cost of $26,000. Upon notification of receipt by the ecorded on a receiving report dated January 2, 2026. The goods were elated $56,000 vendor invoice was not included in accounts payable at to merchandise purchased in December 2025, one-half of which was r in accounts payable at December 31, 2025. tial amounts per Dimitri’s accounting records. Show separately the ld have no effect on the initial amount shown, enter NONE.

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