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5. Alou received goods costing £44,600 on January 2 that were shipped FOB shipping point on December 29. The shipment was a rush order that was supposed to arrive December 31. This purchase was included in the ending inventory of £296,500.

5. Alou received goods costing £44,600 on January 2 that were shipped FOB shipping point on December 29. The shipment was a rush order that was supposed to arrive December 31. This purchase was included in the ending inventory of £296,500.

FINANCIAL ACCOUNTING
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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why the answer is no effect of no.5
A education.wiley.com e Wiley Assignments You've completed all of the work in this assignment. Question 1 of 5 > 0/1 Alou receivea gooas costing £24,400 on January 2. ne gooas were snippea FUB snipping point on Decemper 2o by Grant Co. The goods were not included in the physical count. 3. 4. Alou sold goods costing £35,400 to Emerick Co., FOB destination, on December 30. The goods were received at Emerick on January 8. They were not included in Alous physical inventory. 5. Alou received goods costing £44,600 on January 2 that were shipped FOB shipping point on December 29. The shipment was a rush order that was supposed to arrive December 31. This purchase was included in the ending inventory of £296,500. Determine the correct inventory amount on December 31. The correct inventory amount £ 311700 eTextbook and Media Solution Assistance Used Ending inventory-physical count £296,500 1. No effect: Title passes to purchaser upon shipment when terms are FOB shipping point 2. No effect: Title does not transfer to Alou until goods are received 3. Add to inventory: Title passed to Alou when goods were shipped 24,400 4. Add to inventory: Title remains with Alou until purchaser receives goods 35,400 5. No effect: Title passes to purchaser upon shipment when terms are FOB shipping point Correct inventory £356,300 Attempts: 3 of 3 used
Transcribed Image Text:A education.wiley.com e Wiley Assignments You've completed all of the work in this assignment. Question 1 of 5 > 0/1 Alou receivea gooas costing £24,400 on January 2. ne gooas were snippea FUB snipping point on Decemper 2o by Grant Co. The goods were not included in the physical count. 3. 4. Alou sold goods costing £35,400 to Emerick Co., FOB destination, on December 30. The goods were received at Emerick on January 8. They were not included in Alous physical inventory. 5. Alou received goods costing £44,600 on January 2 that were shipped FOB shipping point on December 29. The shipment was a rush order that was supposed to arrive December 31. This purchase was included in the ending inventory of £296,500. Determine the correct inventory amount on December 31. The correct inventory amount £ 311700 eTextbook and Media Solution Assistance Used Ending inventory-physical count £296,500 1. No effect: Title passes to purchaser upon shipment when terms are FOB shipping point 2. No effect: Title does not transfer to Alou until goods are received 3. Add to inventory: Title passed to Alou when goods were shipped 24,400 4. Add to inventory: Title remains with Alou until purchaser receives goods 35,400 5. No effect: Title passes to purchaser upon shipment when terms are FOB shipping point Correct inventory £356,300 Attempts: 3 of 3 used
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