The Kwok Company's inventory balance on December 31, 2018, was $165,000 (based on a 12/31/2018 physical count) before considering the following transactions: 1. Goods shipped to Kwok f.o.b. destination on December 20, 2018, was received on January 4, 2019. The invoice cost was $30,000. 2. Goods shipped to Kwok f.o.b. shipping point on December 28, 2018, were received on January 5, 2019. The invoice cost was $17,000. 3. Goods shipped from Kwok to a customer f.o.b. destination on December 27, 2018, were received by the customer on January 3, 2019. The sales price was $40,000 and the merchandise cost $22,000. 4. Goods shipped from Kwok to a customer f.o.b. destination on December 26, 2018, were received by the customer on December 30, 2018. The sales price was $20,000 and the merchandise cost $13,000. 5. Goods shipped from Kwok to a customer f.o.b. shipping point on December 28, 2018, was received by the customer on January 4, 2019. The sales price was $25,000 and the merchandise cost $12,000. Determine the correct inventory amount to be reported in Kwok's 2018 balance sheet.

The Kwok Company's inventory balance on December 31, 2018, was $165,000 (based on a 12/31/2018 physical count) before considering the following transactions: 1. Goods shipped to Kwok f.o.b. destination on December 20, 2018, was received on January 4, 2019. The invoice cost was $30,000. 2. Goods shipped to Kwok f.o.b. shipping point on December 28, 2018, were received on January 5, 2019. The invoice cost was $17,000. 3. Goods shipped from Kwok to a customer f.o.b. destination on December 27, 2018, were received by the customer on January 3, 2019. The sales price was $40,000 and the merchandise cost $22,000. 4. Goods shipped from Kwok to a customer f.o.b. destination on December 26, 2018, were received by the customer on December 30, 2018. The sales price was $20,000 and the merchandise cost $13,000. 5. Goods shipped from Kwok to a customer f.o.b. shipping point on December 28, 2018, was received by the customer on January 4, 2019. The sales price was $25,000 and the merchandise cost $12,000. Determine the correct inventory amount to be reported in Kwok's 2018 balance sheet.

Financial Accounting

15th Edition

ISBN:9781337272124

Author:Carl Warren, James M. Reeve, Jonathan Duchac

Publisher:Carl Warren, James M. Reeve, Jonathan Duchac

Chapter6: Accounting For Merchandising Businesses

Section: Chapter Questions

Problem 9PB: On June 30, 2019, the balances of the accounts appearing in the ledger of Simkins Company are as...

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