Concord Bank and Trust is considering giving Alou Company a loan. Before doing so, management decide that further discussions with Alou's accountant may be desirable. One area of particular concern is the inventory account, which a year-end balance of £277,500. Discussions with the accountant reveal the following. 1 2 3. 4. Alou sold goods costing £38,500 to Comerico Company, FOB shipping point, on December 28. The goods are not expected to arrive at Comerico until January 12. The goods were not included in the physical inventory because they were not in the warehouse. The physical count of the inventory did not include goods costing £94,700 that were shipped to Alou FOB destination on December 27 and were still in transit at year-end. Alou received goods costing £22,100 on January 2. The goods were shipped FOB shipping point on December 26 by Grant Co. The goods were not included in the physical count. Alou sold goods costing £33,400 to Emerick Co., FOB destination, on December 30. The goods were received a Emerick on January 8. They were not included in Alous physical inventory.

Concord Bank and Trust is considering giving Alou Company a loan. Before doing so, management decide that further discussions with Alou's accountant may be desirable. One area of particular concern is the inventory account, which a year-end balance of £277,500. Discussions with the accountant reveal the following. 1 2 3. 4. Alou sold goods costing £38,500 to Comerico Company, FOB shipping point, on December 28. The goods are not expected to arrive at Comerico until January 12. The goods were not included in the physical inventory because they were not in the warehouse. The physical count of the inventory did not include goods costing £94,700 that were shipped to Alou FOB destination on December 27 and were still in transit at year-end. Alou received goods costing £22,100 on January 2. The goods were shipped FOB shipping point on December 26 by Grant Co. The goods were not included in the physical count. Alou sold goods costing £33,400 to Emerick Co., FOB destination, on December 30. The goods were received a Emerick on January 8. They were not included in Alous physical inventory.

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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