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.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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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.
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