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For each of the following scenarios, determine the inventory amount that should be reported on the balance sheet. (a) The total merchandise on hand at the end of the year as determined by taking a physical inventory is $62,000. Of the $62,000, $7,000 has been sold FOB destination and is awaiting pickup by the carrier. (b) The total merchandise inventory counted at the end of the year was $63,000. Excluded from the count were purchases of $6,000 in transit under FOB shipping point terms.

For each of the following scenarios, determine the inventory amount that should be reported on the balance sheet. (a) The total merchandise on hand at the end of the year as determined by taking a physical inventory is $62,000. Of the $62,000, $7,000 has been sold FOB destination and is awaiting pickup by the carrier. (b) The total merchandise inventory counted at the end of the year was $63,000. Excluded from the count were purchases of $6,000 in transit under FOB shipping point terms.

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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For each of the following scenarios, determine the inventory amount that should be reported on the balance sheet. (a) The total merchandise on hand at the end of the year as determined by taking a physical inventory is $62,000. Of the $62,000, $7,000 has been sold FOB destination and is awaiting pickup by the carrier. (b) The total merchandise inventory counted at the end of the year was $63,000. Excluded from the count were purchases of $6,000 in transit under FOB shipping point terms. O words </> 7
Transcribed Image Text:For each of the following scenarios, determine the inventory amount that should be reported on the balance sheet. (a) The total merchandise on hand at the end of the year as determined by taking a physical inventory is $62,000. Of the $62,000, $7,000 has been sold FOB destination and is awaiting pickup by the carrier. (b) The total merchandise inventory counted at the end of the year was $63,000. Excluded from the count were purchases of $6,000 in transit under FOB shipping point terms. O words </> 7
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