In your audit of Thomas Taylor Company, you find that a physical inventory on December 31, 2025, showed merchandise with a cost of $403,730 was on hand at that date. You also discover the following items were all excluded from the $403,730. 1. Merchandise of $61,080 which is held by Taylor on consignment. The consignor is the Max Suzuki Company. Merchandise costing $35,400 which was shipped by Taylor f.o.b. destination to a customer on December 31, 2025. The customer was expected to receive the merchandise on January 6, 2026. 2. 3. 4. 5. Merchandise costing $43,270 which was shipped by Taylor f.o.b. shipping point to a customer on December 29, 2025. The customer was scheduled to receive the merchandise on January 2, 2026. Merchandise costing $84,630 shipped by a vendor f.o.b. destination on December 30, 2025, and received by Taylor on January 4, 2026. Merchandise costing $47,400 shipped by a vendor f.o.b. shipping point on December 31, 2025, and received by Taylor on January 5, 2026.

In your audit of Thomas Taylor Company, you find that a physical inventory on December 31, 2025, showed merchandise with a cost of $403,730 was on hand at that date. You also discover the following items were all excluded from the $403,730. 1. Merchandise of $61,080 which is held by Taylor on consignment. The consignor is the Max Suzuki Company. Merchandise costing $35,400 which was shipped by Taylor f.o.b. destination to a customer on December 31, 2025. The customer was expected to receive the merchandise on January 6, 2026. 2. 3. 4. 5. Merchandise costing $43,270 which was shipped by Taylor f.o.b. shipping point to a customer on December 29, 2025. The customer was scheduled to receive the merchandise on January 2, 2026. Merchandise costing $84,630 shipped by a vendor f.o.b. destination on December 30, 2025, and received by Taylor on January 4, 2026. Merchandise costing $47,400 shipped by a vendor f.o.b. shipping point on December 31, 2025, and received by Taylor on January 5, 2026.

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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