The unadjusted inventory balance of Conway Corp. is $800,000 on December 31, based on a physicalinventory count. Several items must be considered before the inventory valuation is finalized.1. On December 31, the physical inventory excluded $10,000 of merchandise inventory shipped f.o.b.destination to Conway Corp. from a vendor. The inventory arrived on January 5 of the following year.2. On December 31, the physical inventory included $1,500 of merchandise held on consignment. Theconsignor is PackagingPlus Inc.3. $75,000 of in-transit merchandise was shipped f.o.b. shipping point to a customer and was excludedfrom the physical inventory count. The merchandise was shipped on December 28 and is expected toarrive at the customer's site on December 31.4. On December 31, the physical inventory excluded $25,000 of merchandise inventory held onconsignment by a customer. Conway Corp. is the consignor.5. Goods are in transit from a vendor to Conway Corp. on December 31. The invoice cost was $40,000 andthe goods were shipped f.o.b. shipping point on December 26. The merchandise was excluded from thephysical inventory count because the merchandise had not been received.6. Merchandise with a cost of $30,000 is held in the receiving department for return, but Conway stillcontrols this inventory. The merchandise was excluded from the physical inventory count.RequiredCalculate the adjusted inventory balance on December 31.$ 845,000

Inventory is bought by the company which is further sold to customers to generate revenue. The cost…

4. On December 31, the physical inventory excluded $25,000 of merchandise inventory held on consignment by a customer. Conway Corp. is the consignor. 5. Goods are in transit from a vendor to Conway Corp. on December 31. The invoice cost was $40,000 and the goods were shipped f.o.b. shipping point on December 26. The merchandise was excluded from the physical inventory count because the merchandise had not been received. 6. Merchandise with a cost of $30,000 is held in the receiving department for return, but Conway still controls this inventory. The merchandise was excluded from the physical inventory count. Required Calculate the adjusted inventory balance on December 31. $ 845,000

4. On December 31, the physical inventory excluded $25,000 of merchandise inventory held on consignment by a customer. Conway Corp. is the consignor. 5. Goods are in transit from a vendor to Conway Corp. on December 31. The invoice cost was $40,000 and the goods were shipped f.o.b. shipping point on December 26. The merchandise was excluded from the physical inventory count because the merchandise had not been received. 6. Merchandise with a cost of $30,000 is held in the receiving department for return, but Conway still controls this inventory. The merchandise was excluded from the physical inventory count. Required Calculate the adjusted inventory balance on December 31. $ 845,000

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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The inventory records of Sixto Corp at Dec 31, 20X1 show a balance of P260,000. Also the following data. 1. Good costing P10,000 purchased FOB shipping point were not yet recorded because the goods is still in transit. Goods were shipped by the seller on Dec 29 and prepaid the freight of P1,000. 2. Goods costing P16,000 were shipped to customer on Dec 31. Term was FOB shipping point. The goods were still included in the ledger at Dec 31. 3. Goods received on Dec 30 costing P5,000 were recorded in Jan 5, 20X2. 4. Goods costing P20,000 were shipped to a customer on Dec 31. Term was FOB destination. Goods were not included in the ledger. 5. Obsolete goods with no resale value amounting to P4,000 were still included in the ledgers. How much is the correct inventory?
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On June 10, Blue Spruce Company purchased $8,400 of merchandise on account from Ayayai Company, FOB shipping point, terms 3/10, n/30. Blue Spruce pays the freight costs of $460 on June 11. Goods totaling $700 are returned to Ayayai for credit on June 12. On June 19, Blue Spruce pays Ayayai Company in full, less the discount. Both companies use a perpetual inventory system.
Information on Monty Corp., which reports under ASPE, follows: July 1 Dec. 29 3 5 9 Monty Corp. sold to Sandhill Ltd. merchandise having a sales price of $9,200, terms 2/10, n/60. Ignore cost of goods sold entry. Sandhill returned defective merchandise having a sales price of $900. The merchandise was not saleable and was scrapped. Accounts receivable of $20,200 are factored with Pronghorn Corp. without recourse at a financing charge of 8%. Cash Is received for the proceeds and collections are handled by the finance company. Specific accounts receivable of $15,700 are pledged to Landon Credit Corp. as security for a loan of $10,700 at a finance charge of 3% of the loan amount plus 8% Interest on the outstanding balance. Monty will continue to make the collections. All the accounts receivable pledged are past the discount period and were originally subject to a 2% discount. Sandhill notifies Monty that It Is bankrupt and will be able to pay only 10% of its account. Prepare the entry to…
Presented below are selected transactions for Flounder Company during September and October of the current year. Flounder uses a periodic inventory system. Sept. 1 Purchased merchandise on account from Hillary Company at a cost of $49,000, FOB destination, terms 1/15, n/30. 2 The correct company paid $2,000 of freight charges to Trucking Company on the September 1 merchandise purchase. 5 Returned for credit $2,240 of damaged goods purchased from Hillary Company on September 1. 15 Sold the remaining merchandise purchased from Hillary Company to Irvine Company for $116,900, terms 2/10, n/30, FOB destination. 16 The correct company paid $2,500 of freight charges on the September 15 sale of merchandise. 17 Issued Irvine Company a credit of $5,600 for returned goods. These goods had cost Flounder Company $3,000 and were returned to inventory. 25 Received the balance owing from Irvine Company for the September 15 sale. 30 Paid Hillary Company the balance…
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12. Boston Dollar Store uses the gross method to record purchase discounts and uses a perpetual inventory system. Boston engaged in the following transactions during April:April 12 - Purchased $15,000 in merchandise subject to terms of 2/10, n/30. The goods were shipped f.o.b. shipping point.April 13 - Received a billing from Orange Freight Lines for $300 for the April 12 purchase.April 15 - Returned $1,000 of merchandise from the April 12 purchase.April 20 - Paid balances due from April 12 purchase.Required:Prepare journal entries to record the above transactions. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
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