As part of your audit of receivables of Blueberry Merchandising, you performed a cut-off test of sales. Results of the cut-off test revealed the following: FOBSP FOBD STC FOB Shipping point FOB Destination Shipped to Consignee Recorded as Sales in December 2016 Shipment Received by Selling price Cost Terms Date customers 18,000 16,500 FOBSP 12/26/2016 12/29/2016 12,500 10,200 FOBD 8,680 14,200 12,500 STC 9,000 10,000 7,800 12/26/2016 12/29/2016 12/28/2016 1/02/2017 12/29/2016 1/02/2017 7,500 FOBSP 12/30/2016 1/02/2017 12/31/2016 1/03/2017 6,100 FOBSP 12/31/2016 1/02/2017 12/31/2016 1/02/2017 7,240 FOBD 7,750 FOBD 14,000 12,000 STC Recorded Sales in January 2017 Shipment Received by Selling price 21,000 18,200 FOBSP 12/31/2016 1/03/2017 10,500 4,500 6,500 Cost Terms Date customers 8,800 FOBD 12/31/2016 1/03/2017 3,200 FOBD 5,000 FOBSP 1/02/2017 1/05/2017 1/02/2017 1/03/2017 A count of all inventories within the premises was made in the morning of December 31, 2016 prior to any shipment made during the day. The total cost of the count was recorded as inventories as of December 31, 2016. The goods shipped to consignees are still unsold on December 31. The unadjusted ledger balances show the following
As part of your audit of receivables of Blueberry Merchandising, you performed a cut-off test of sales. Results of the cut-off test revealed the following: FOBSP FOBD STC FOB Shipping point FOB Destination Shipped to Consignee Recorded as Sales in December 2016 Shipment Received by Selling price Cost Terms Date customers 18,000 16,500 FOBSP 12/26/2016 12/29/2016 12,500 10,200 FOBD 8,680 14,200 12,500 STC 9,000 10,000 7,800 12/26/2016 12/29/2016 12/28/2016 1/02/2017 12/29/2016 1/02/2017 7,500 FOBSP 12/30/2016 1/02/2017 12/31/2016 1/03/2017 6,100 FOBSP 12/31/2016 1/02/2017 12/31/2016 1/02/2017 7,240 FOBD 7,750 FOBD 14,000 12,000 STC Recorded Sales in January 2017 Shipment Received by Selling price 21,000 18,200 FOBSP 12/31/2016 1/03/2017 10,500 4,500 6,500 Cost Terms Date customers 8,800 FOBD 12/31/2016 1/03/2017 3,200 FOBD 5,000 FOBSP 1/02/2017 1/05/2017 1/02/2017 1/03/2017 A count of all inventories within the premises was made in the morning of December 31, 2016 prior to any shipment made during the day. The total cost of the count was recorded as inventories as of December 31, 2016. The goods shipped to consignees are still unsold on December 31. The unadjusted ledger balances show the following
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
1. What is the adjusted balance of
2. What is the adjusted balance of sales as of December 31, 2016?
Transcribed Image Text:As part of your audit of receivables of Blueberry Merchandising, you performed a cut-off test of sales. Results
of the cut-off test revealed the following:
FOBSP
FOBD
STC
FOB Shipping point
FOB Destination
Shipped to Consignee
Recorded as Sales in December 2016
Shipment
Received by
Selling
price
Cost
Terms
Date
customers
18,000 16,500 FOBSP 12/26/2016 12/29/2016
12/26/2016 12/29/2016
12/28/2016 1/02/2017
12/29/2016 1/02/2017
7,500 FOBSP 12/30/2016 1/02/2017
12/31/2016 1/03/2017
6,100 FOBSP 12/31/2016 1/02/2017
12/31/2016 1/02/2017
12,500 10,200 FOBD
7,240 FOBD
12,500 STC
8,680
14,200
9,000
10,000
7,800
7,750 FOBD
14,000 12,000 STC
Recorded Sales in January 2017
Shipment
Date
Received by
Selling
price
21,000 18,200 FOBSP 12/31/2016 1/03/2017
10,500
4,500
6,500
Cost
Terms
customers
8,800 FOBD 12/31/2016 1/03/2017
3,200 FOBD
5,000 FOBSP 1/02/2017 1/05/2017
1/02/2017 1/03/2017
A count of all inventories within the premises was made in the morning of December 31, 2016 prior to any
shipment made during the day. The total cost of the count was recorded as inventories as of December 31,
2016. The goods shipped to consignees are still unsold on December 31. The unadjusted ledger balances show
the following:
Accounts receivables
Inventories
Sales
P 376,500
525,000
1,520,000
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