For each of the following scenarios, determine the inventory amount that should be reported on the balance sheet. (a) The total merchandise on hand at the end of the year as determined by taking a physical inventory is $62,000. Of the $62,000, $7,000 has been sold FOB destination and is awaiting pickup by the carrier. (b) The total merchandise inventory counted at the end of the year was $63,000. Excluded from the count were purchases of $6,000 in transit under FOB shipping point terms.

For each of the following scenarios, determine the inventory amount that should be reported on the balance sheet. (a) The total merchandise on hand at the end of the year as determined by taking a physical inventory is $62,000. Of the $62,000, $7,000 has been sold FOB destination and is awaiting pickup by the carrier. (b) The total merchandise inventory counted at the end of the year was $63,000. Excluded from the count were purchases of $6,000 in transit under FOB shipping point terms.

Financial Accounting

14th Edition

ISBN:9781305088436

Author:Carl Warren, Jim Reeve, Jonathan Duchac

Publisher:Carl Warren, Jim Reeve, Jonathan Duchac

Chapter7: Inventories

Section: Chapter Questions

Problem 3PEA: Beginning inventory, purchases, and sales for Item Zebra 9x are as follows: Assuming a perpetual...

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