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.
Determine the correct inventory amount to be reported in Raymond’s 2021 balance sheet.
CORRECT INVENTORY BALANCE:
The following table shows the calculation of correct inventory amount to be reported in Raymond's 2021 balance sheet:
f.o.b destination means title to the goods assigned to the buyer from the supplier when the goods reached the destination.
Here goods reached the destination on January 3, 2022. So the title remains with the supplier. Hence inventory is to be excluded from December 31,2021.
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