Empty Company reported inventory on December 31, 2019 at 2,500,000 based on physical count priced at cost and before any necessary adjustment for the following: a. Merchandise costing 100,000, shipped FOB shipping point from a vendor on December 30, 2019 was received and recorded on January 5, 2020. (add or deduct) b. Goods in the shipping area were excluded from inventory although shipment was not made until January 5, 2020. The goods billed to the customer FOB shipping point on December 30, 2019 had a cost of 400,000. (add or deduct) "What amount should be reported as inventory on December 31, 2019?
Empty Company reported inventory on December 31, 2019 at 2,500,000 based on physical count priced at cost and before any necessary adjustment for the following: a. Merchandise costing 100,000, shipped FOB shipping point from a vendor on December 30, 2019 was received and recorded on January 5, 2020. (add or deduct) b. Goods in the shipping area were excluded from inventory although shipment was not made until January 5, 2020. The goods billed to the customer FOB shipping point on December 30, 2019 had a cost of 400,000. (add or deduct) "What amount should be reported as inventory on December 31, 2019?
Financial Accounting
15th Edition
ISBN:9781337272124
Author:Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:Carl Warren, James M. Reeve, Jonathan Duchac
Chapter6: Accounting For Merchandising Businesses
Section: Chapter Questions
Problem 9PA: On December 31, 2019, the balances of the accounts appearing in the ledger of Wyman Company are as...
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