5.On December 29, Sheridan shipped goods with a selling price of$74,000 and a cost of $60,000 to Macchia Sales Corporation FOBshipping point. The goods arrived on January 3. Macchia had onlyordered goods with a selling price of $11,000 and a cost of $8,000.However, a sales manager at Sheridan had authorized the shipment andsaid that if Macchia wanted to ship the goods back next week, it could.6.Included in the count was $31,000 of goods that were parts for amachine that the company no longer made. Given the high-tech nature ofSheridan's products, it was unlikely that these obsolete parts had anyother use. However, management would prefer to keep them on thebooks at cost, "since that is what we paid for them, after all."Correct inventory504000

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Answered: 5. On December 29, Sheridan shipped…

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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