Answered: Herc Co.’s inventory at December 31,…

Name: Herc Co.’s inventory at December 31, 2016, was $1,500,000 based on a p
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Description: Herc Co.’s inventory at December 31, 2016, was $1,500,000 based on a physical count priced at cost, and before any necessary adjustment for the following: • Merchandise costing $90,000, shipped f.o.b shipping point from a vendor on December 30, 2016,

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter6: Cost Of Goods Sold And Inventory

Section: Chapter Questions

Problem 71BPSB

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Herc Co.’s inventory at December 31, 2016, was $1,500,000 based on a physical count priced at cost, and before any necessary adjustment for the following: • Merchandise costing $90,000, shipped f.o.b shipping point from a vendor on December 30, 2016, was received and recorded on January 5, 2017. • Goods in the shipping area were excluded from inventory although shipment was not made until January 4, 2017. The goods, billed to the customer f.o.b. shipping point on December 30, 2016, had a cost of $120,000. What amount should Herc report as inventory in its December 31, 2016, balance sheet? a. $1,500,000 b. $1,590,000 c. $1,700,000 d. $1,710,000

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