Question

Prepare any correcting entries to adjust inventory to its proper amount at December 31, 2014. Assume...

Prepare any correcting entries to adjust inventory to its proper amount at December 31, 2014. Assume the books have not been closed.

1. Craig uses the periodic method of recording inventory. A physical count reveals $299,250 of inventory on hand at December 31, 2014.
2. Not included in the physical count of inventory is $17,097 of merchandise purchased on December 15 from Browser. This merchandise was shipped f.o.b. shipping point on December 29 and arrived in January. The invoice arrived and was recorded on December 31.
3. Included in inventory is merchandise sold to Champy on December 30, f.o.b. destination. This merchandise was shipped after it was counted. The invoice was prepared and recorded as a sale on account for $16,307 on December 31. The merchandise cost $9,364, and Champy received it on January 3.
4. Included in inventory was merchandise received from Dudley on December 31 with an invoice price of $19,913. The merchandise was shipped f.o.b. destination. The invoice, which has not yet arrived, has not been recorded.
5. Not included in inventory is $10,880 of merchandise purchased from Glowser Industries. This merchandise was received on December 31 after the inventory had been counted. The invoice was received and recorded on December 30.
6. Included in inventory was $13,298 of inventory held by Craig on consignment from Jackel Industries.
7. Included in inventory is merchandise sold to Kemp f.o.b. shipping point. This merchandise was shipped after it was counted. The invoice was prepared and recorded as a sale for $24,079 on December 31. The cost of this merchandise was $13,402, and Kemp received the merchandise on January 5.
8. Excluded from inventory was a carton labeled “Please accept for credit.” This carton contains merchandise costing $1,911 which had been sold to a customer for $3,312. No entry had been made to the books to reflect the return, but none of the returned merchandise seemed damaged
Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

Hi

Please let me know in case you face any issue:

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
E8.5B (L0 2) (Inventoriable Goods and Costs—Error Adjustments) Wycliffe Company asks you to review its December...
E8.5B (L0 2) (Inventoriable Goods and Costs—Error Adjustments) Wycliffe Company asks you to review its December 31, 2020, inventory values and prepare the necessary adjustments to the books. The following information is given to you: 1. Wycliffe uses the periodic method of recording inventory. A physical count reveals $561,810 of inventory on hand at December 31, 2020. 2. Not included in the physical count of inventory is $21,500 of merchandise purchased on December 20. This merchandise was shipped f.o.b. destination...
The following inventory transactions took place near December 31, 2018, the end of the Rasul Company's...
The following inventory transactions took place near December 31, 2018, the end of the Rasul Company's fiscal year-end: On December 27, 2018, merchandise costing $2,000 was shipped to the Myers Company on consignment. The shipment arrived at Myers's location on December 29, but none of the merchandise was sold by the end of the year. The merchandise was not included in the 2018 ending inventory. On January 5, 2019, merchandise costing $8,000 was received from a supplier and recorded as...
The December 31, 2021, year-end inventory balance of the Raymond Corporation is $228,000. You have been...
The December 31, 2021, year-end inventory balance of the Raymond Corporation is $228,000. You have been asked to review the following transactions to determine if they have been correctly recorded. Goods shipped to Raymond f.o.b. destination on December 26, 2021, were received on January 2, 2022. The invoice cost of $39,000 is included in the preliminary inventory balance. At year-end, Raymond held $23,000 of merchandise on consignment from the Harrison Company. This merchandise is included in the preliminary inventory balance....
Determining Merchandise to be Included or Excluded from Ending Inventory The unadjusted inventory balance of Sara...
Determining Merchandise to be Included or Excluded from Ending Inventory The unadjusted inventory balance of Sara Ann Corp. is $450,000 on December 31, 2020, based on a physical inventory count. The following items must be considered before the inventory valuation is finalized. a. On December 31, the physical inventory excluded $450 of merchandise inventory shipped to Sara Ann Corp. from a vendor f.o.b. shipping point that arrived on January 1, 2021. b. On December 31, the physical inventory excluded $16,200...
You have been provided with the following information for LnS Shoe Outlet which accounts for its...
You have been provided with the following information for LnS Shoe Outlet which accounts for its inventory using the periodic system. Its financial year ends September 30. All purchases and sales are made on account. - Physical count at beginning of September 30, 2020 valued inventory of shoes at $469,780. - Included in the physical count was shoes purchased for $20,840 on September 17 from Kmart. The shoes were shipped f.o.b. destination point on September 30 and arrived October 7....
You have been provided with the following information for LnS Shoe Outlet which accounts for its...
You have been provided with the following information for LnS Shoe Outlet which accounts for its inventory using the periodic system. Its financial year ends September 30. All purchases and sales are made on account. § Physical count at beginning of September 30, 2020 valued inventory of shoes at $469,780. § Included in the physical count was shoes purchased for $20,840 on September 17 from Kmart. The shoes were shipped f.o.b. destination point on September 30 and arrived October 7....
You have been provided with the following information for LnS Shoe Outlet which accounts for its...
You have been provided with the following information for LnS Shoe Outlet which accounts for its inventory using the periodic system. Its financial year ends September 30. All purchases and sales are made on account. Physical count at beginning of September 30, 2020 valued inventory of shoes at $469,780. Included in the physical count was shoes purchased for $20,840 on September 17 from Kmart. The shoes were shipped f.o.b. destination point on September 30 and arrived October 7. The invoice...
The merchandise inventory in Cullumber Company was counted after the close of business on December 31,...
The merchandise inventory in Cullumber Company was counted after the close of business on December 31, 2021, the company’s year end. It was determined that the total cost of this inventory was $52,200. Cullumber wants to know if this is the correct amount that should be reported on the company’s December 31, 2021, balance sheet or if an adjustment needs to be made for any of the following items: (a) The count included items costing $1,500 that had been sold...
Problems 10-2 - Correcting inventory errors (LO10-14) During your audit of Patti Company’s ending inventory at...
Problems 10-2 - Correcting inventory errors (LO10-14) During your audit of Patti Company’s ending inventory at December 31, 20X1, you find the following inventory accounting errors: a. Goods in Patti’s warehouse on consignment from Valley, Inc., were included in Patti’s ending inventory. b. On December 31, 20X1, Patti received $4,700 worth of inventory, which was included in the 20X1 ending inventory. However, the invoice on this merchandise was not received by Patti until January 3, 20X2, at which time the...
In your audit of Henry Company, you find that a physical inventory on December 31, 2017,...
In your audit of Henry Company, you find that a physical inventory on December 31, 2017, showed merchandise with a cost of $411,580 was on hand at that date. You also discover the following items were all excluded from the $411,580. 1. Merchandise of $60,710 which is held by Henry on consignment. The consignor is the Max Suzuki Company. 2. Merchandise costing $38,360 which was shipped by Henry f.o.b. destination to a customer on December 31, 2017. The customer was...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT