Bonita Inc. took a physical inventory at the end of the year and determined that $845000 of goods were on hand. In addition, the following items were not included in the physical count. Bonita, Inc. determined that $98000 of goods purchased were in transit that were shipped f.o.b. destination (goods were actually received by the company three days after the inventory count). The company sold $39000 worth of inventory f.o.b. destination that did not reach the destination yet. What amount should Bonita report as inventory at the end of the year? $982000. $943000. $845000. $884000.
Bonita Inc. took a physical inventory at the end of the year and determined that $845000 of goods were on hand. In addition, the following items were not included in the physical count. Bonita, Inc. determined that $98000 of goods purchased were in transit that were shipped f.o.b. destination (goods were actually received by the company three days after the inventory count). The company sold $39000 worth of inventory f.o.b. destination that did not reach the destination yet. What amount should Bonita report as inventory at the end of the year?
Inventory at the end of financial year to be shown in balance sheet , should means the inventory , the ownership of which belongs to the company.
FOB destination means where it is the risk and responsibility of seller to deliver the goods to the buyer . Seller is the owner of the goods until the goods reaches the buyer safely.
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
