Monty Corporation asks you to review its December 31, 2023 inventory values and prepare the adjustments that are needed to thebooks. The following information is given to you:1.Monty uses the periodic method of recording inventory. A physical count reveals $234,400 of inventory on hand atDecember 31, 2023, although the books have not yet been adjusted to reflect the ending inventory.2.Not included in the physical count of inventory is $10,700 of merchandise purchased on December 15 from Shamsi. Thismerchandise was shipped f.o.b. shipping point on December 29 and arrived in January. The invoice arrived and wasrecorded on December 31.3Included in inventory is merchandise sold to Sage on December 30, f.o.b. destination. This merchandise was shipped after itwas counted. The invoice was prepared and recorded as a sale on account for $12,700 on December 31. The merchandisecost $7,440, and Sage received it on January 3.4.Included in the count of inventory was merchandise received from Dutton on December 31 with an invoice price of$15,100. The merchandise was shipped f.o.b. destination. The invoice, which has not yet arrived, has not been recorded.5.Not included in inventory is $8,800 of merchandise purchased from Growler Industries. This merchandise was received onDecember 31, after the inventory had been counted. The invoice was received and recorded on December 30.6.Included in inventory was $10,600 of inventory held by Monty on consignment from Jackel Industries.7.Included in inventory was merchandise sold to Kemp, f.o.b. shipping point. This merchandise was shipped after it wascounted, on December 31. The invoice was prepared and recorded as a sale for $19,000 on December 31. The cost of thismerchandise was $11,100, and Kemp received the merchandise on January 5.8Excluded from inventory was a carton labelld "Please accept for credit." This carton contained merchandise costing$2, 100, which had been sold to a customer for $2,900. No entry had been made to the books to record the return, butnone of the returned merchandise seemed damaged.9.Monty sold $12,000 of inventory to Simply Corp. for $23,000 on account on December 15, 2023. These items wereshipped f.o.b. shipping point. The terms of sale indicate that Simply Corp. will be permitted to return an unlimited amountuntil May 15, 2024. Monty has never provided unlimited returns in the past and is not able to estimate the amount of anypotential returns that Simply may make. Determine the proper inventory balance for Monty at December 31, 2023.
Monty Corporation asks you to review its December 31, 2023 inventory values and prepare the adjustments that are needed to the
books. The following information is given to you:
1.
Monty uses the periodic method of recording inventory. A physical count reveals $234,400 of inventory on hand at
December 31, 2023, although the books have not yet been adjusted to reflect the ending inventory.
2.
Not included in the physical count of inventory is $10,700 of merchandise purchased on December 15 from Shamsi. This
merchandise was shipped f.o.b. shipping point on December 29 and arrived in January. The invoice arrived and was
recorded on December 31.
3
Included in inventory is merchandise sold to Sage on December 30, f.o.b. destination. This merchandise was shipped after it
was counted. The invoice was prepared and recorded as a sale on account for $12,700 on December 31. The merchandise
cost $7,440, and Sage received it on January 3.
4.
Included in the count of inventory was merchandise received from Dutton on December 31 with an invoice price of
$15,100. The merchandise was shipped f.o.b. destination. The invoice, which has not yet arrived, has not been recorded.
5.
Not included in inventory is $8,800 of merchandise purchased from Growler Industries. This merchandise was received on
December 31, after the inventory had been counted. The invoice was received and recorded on December 30.
6.
Included in inventory was $10,600 of inventory held by Monty on consignment from Jackel Industries.
7.
Included in inventory was merchandise sold to Kemp, f.o.b. shipping point. This merchandise was shipped after it was
counted, on December 31. The invoice was prepared and recorded as a sale for $19,000 on December 31. The cost of this
merchandise was $11,100, and Kemp received the merchandise on January 5.
8
Excluded from inventory was a carton labelld "Please accept for credit." This carton contained merchandise costing
$2, 100, which had been sold to a customer for $2,900. No entry had been made to the books to record the return, but
none of the returned merchandise seemed damaged.
9.
Monty sold $12,000 of inventory to Simply Corp. for $23,000 on account on December 15, 2023. These items were
shipped f.o.b. shipping point. The terms of sale indicate that Simply Corp. will be permitted to return an unlimited amount
until May 15, 2024. Monty has never provided unlimited returns in the past and is not able to estimate the amount of any
potential returns that Simply may make.
Determine the proper inventory balance for Monty at December 31, 2023.
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