In your audit of Mark Harris Company, you find that a physical inventory on December 31, 2020, showed merchandise with a cost of $445,530 was on hand at that date. You also discover the following items were all excluded from the $445,530. 1. Merchandise of $55,190 which is held by Harrison consignment. The consignor is the Max Suzuki Company. 2. Merchandise costing $40,830 which was shipped by Harris f.o.b. destination to a customer on December 31, 2020. The customer was expected to receive the merchandise on January 6, 2021. 3. Merchandise costing $48,740 which was shipped by Harris f.o.b. shipping point to a customer on December 29, 2020. The customer was scheduled to receive the merchandise on January 2, 2021. 4. Merchandise costing $75,050 shipped by a vendor f.o.b. destination on December 30, 2020, and received by Harrison on January 4, 2021. 5. Merchandise costing $49,450 shipped by a vendor f.o.b. shipping point on December 31, 2020, and received by Harrison on January 5, 2021. Based on the above information, calculate the amount that should appear on Harris's balance sheet on December 31, 2020, for inventory.

In your audit of Mark Harris Company, you find that a physical inventory on December 31, 2020, showed merchandise with a cost of $445,530 was on hand at that date. You also discover the following items were all excluded from the $445,530. 1. Merchandise of $55,190 which is held by Harrison consignment. The consignor is the Max Suzuki Company. 2. Merchandise costing $40,830 which was shipped by Harris f.o.b. destination to a customer on December 31, 2020. The customer was expected to receive the merchandise on January 6, 2021. 3. Merchandise costing $48,740 which was shipped by Harris f.o.b. shipping point to a customer on December 29, 2020. The customer was scheduled to receive the merchandise on January 2, 2021. 4. Merchandise costing $75,050 shipped by a vendor f.o.b. destination on December 30, 2020, and received by Harrison on January 4, 2021. 5. Merchandise costing $49,450 shipped by a vendor f.o.b. shipping point on December 31, 2020, and received by Harrison on January 5, 2021. Based on the above information, calculate the amount that should appear on Harris's balance sheet on December 31, 2020, for inventory.

Financial Accounting

15th Edition

ISBN:9781337272124

Author:Carl Warren, James M. Reeve, Jonathan Duchac

Publisher:Carl Warren, James M. Reeve, Jonathan Duchac

Chapter7: Inventories

Section: Chapter Questions

Problem 7PA: Selected data on merchandise inventory, purchases, and sales for Celebrity Tan Co. and Ranchworks...

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