Question 15 The Charlotte Company made a $9,000 purchase near the end of the current year. The company also made a sale for $11,000 of inventory costing $6,000. Charlotte did not include either the inventory purchased or the inventory sold in its year-end inventory. Ending inventory was reported as $100,000. The purchase was FOB destination and shipped on December 29, Year One, and received by Charlotte on January 3, Year Two. The sale was FOB destination. It was shipped on December 30, Year One, and received by the customer on January 4, Year Two. What was the correct amount of inventory that Charlotte should have reported at the end of Year One? O $109,000 $106,000 1/1 O $94,000 O $97,000
Question 15 The Charlotte Company made a $9,000 purchase near the end of the current year. The company also made a sale for $11,000 of inventory costing $6,000. Charlotte did not include either the inventory purchased or the inventory sold in its year-end inventory. Ending inventory was reported as $100,000. The purchase was FOB destination and shipped on December 29, Year One, and received by Charlotte on January 3, Year Two. The sale was FOB destination. It was shipped on December 30, Year One, and received by the customer on January 4, Year Two. What was the correct amount of inventory that Charlotte should have reported at the end of Year One? O $109,000 $106,000 1/1 O $94,000 O $97,000
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter7: Inventories: Cost Measurement And Flow Assumptions
Section: Chapter Questions
Problem 14RE: On January 1 of Year 1, Dorso Company adopted the dollar-value LIFO method of inventory costing....
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