Answered: Receiving Report Number Date Received…

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter7: Inventories: Cost Measurement And Flow Assumptions

Section: Chapter Questions

Problem 6E: Goods in Transit Gravais Company made two purchases on December 29, 2019. One purchase for 3,000 was...

See similar textbooks

Related questions

Concept explainers

Topic Video

Question

When tracing using the cutoff information from the December 31 inventory count of Thermo-Tempur Mattresses, you note the following information:

Check the below image for information.

The documentation indicates that the last receiving report included in the inventory count was Receiving Report 1182. Receiving Reports 1183 and 1184 were for goods received on the company’s truck but not unloaded. Receiving report 1185 was for goods received on January 3.
Required:
Prepare a correcting journal entry assuming that Thermo-Tempur uses (a) a periodic inventory system and (b) a perpetual inventory system that was updated for the inventory count.

Receiving Report Number
Date Received
Total Cost
12/28
$12,433.61
1180
12/28
8,923.34
1181
12/29
15,448.22
1182
12/31
14,109.33
1183
12/31
11,482.57
1184
1/2
17,852.56
1185
1/3
8,753.95
The purchases list shows that the following items were recorded in December.
Receiving Report Number
Date Received
Total Cost
1179
12/28
$12,433.61
12/28
8,923.34
1181
12/29
15,448.22
1182
12/31
14,109.33
1184
1/2
17,852.56

Expert Solution

Trending now

This is a popular solution!

Step by step

Solved in 3 steps with 4 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions