Answered: Receiving Report Number Date Received…

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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When tracing using the cutoff information from the December 31 inventory count of Thermo-Tempur Mattresses, you note the following information:

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The documentation indicates that the last receiving report included in the inventory count was Receiving Report 1182. Receiving Reports 1183 and 1184 were for goods received on the company’s truck but not unloaded. Receiving report 1185 was for goods received on January 3.
Required:
Prepare a correcting journal entry assuming that Thermo-Tempur uses (a) a periodic inventory system and (b) a perpetual inventory system that was updated for the inventory count.

Receiving Report Number
Date Received
Total Cost
12/28
$12,433.61
1180
12/28
8,923.34
1181
12/29
15,448.22
1182
12/31
14,109.33
1183
12/31
11,482.57
1184
1/2
17,852.56
1185
1/3
8,753.95
The purchases list shows that the following items were recorded in December.
Receiving Report Number
Date Received
Total Cost
1179
12/28
$12,433.61
12/28
8,923.34
1181
12/29
15,448.22
1182
12/31
14,109.33
1184
1/2
17,852.56

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