In your audit of Jose Oliva Company, you find that a physical inventory on December 31, 2020, showed merchandise with a cost of $441,000 was on hand at that date. You also discover the following items were all excluded from the $441,000.1. Merchandise of $61,000 which is held by Oliva on consignment. The consignor is the Max Suzuki Company.2. Merchandise costing $38,000 which was shipped by Oliva 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 $46,000 which was shipped by Oliva 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 $83,000 shipped by a vendor f.o.b. destination on December 30, 2020, and received by Oliva on January 4, 2021.5. Merchandise costing $51,000 shipped by a vendor f.o.b. shipping point on December 31, 2020, and received by Oliva on January 5, 2021.Based on the above information, calculate the amount that should appear on Oliva’s balance sheet at December 31, 2020, for inventory.Inventory as on December 31, 2020 $

Name: In your audit of Jose Oliva Company, you find that a physical inventor
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Description: In your audit of Jose Oliva Company, you find that a physical inventory on December 31, 2020, showed merchandise with a cost of $441,000 was on hand at that date. You also discover the following items were all excluded from the $441,000.1. Merchandis

SOLUTION- DETERMINE THE ITEMS TO BE INCLUDED OR EXCLUDED IN THE CALCULATION OF INVENTORY- 1-…

Answered: In your audit of Jose Oliva Company,…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

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In your audit of Jose Oliva Company, you find that a physical inventory on December 31, 2020, showed merchandise with a cost of $441,000 was on hand at that date. You also discover the following items were all excluded from the $441,000.

1.		Merchandise of $61,000 which is held by Oliva on consignment. The consignor is the Max Suzuki Company.
2.		Merchandise costing $38,000 which was shipped by Oliva 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 $46,000 which was shipped by Oliva 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 $83,000 shipped by a vendor f.o.b. destination on December 30, 2020, and received by Oliva on January 4, 2021.
5.		Merchandise costing $51,000 shipped by a vendor f.o.b. shipping point on December 31, 2020, and received by Oliva on January 5, 2021.

Based on the above information, calculate the amount that should appear on Oliva’s balance sheet at December 31, 2020, for inventory.

Inventory as on December 31, 2020

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

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