Essay
For each of the following, calculate the cost of inventory reported on the balance sheet.
(a)
The total merchandise inventory counted at the end of the year was $73,000.Purchases for $5,000 are in transit under FOB shipping point terms.
(b)
The total merchandise inventory counted at the end of the year was $75,000.Purchases
for $5,000 are in transit under FOB destination terms.
Correct Answer:
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(a)
$78,000 = $73,000 + 5,000
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Correct Answer:
Verified
$78,000 = $73,000 + 5,000
...
View Answer
Unlock this answer now
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