The Rudolph Corporation's inventory on December 31, 2021, was $325,000 based on a physical count before considering the following transactions:Merchandise costing $30,000, shipped f.o.b. shipping point from a supplier on December 30, 2021, was received by Rudolph on January 5, 2022.Merchandise costing $22,000, shipped f.o.b. destination from a supplier on December 28, 2021, was received by Rudolph on January 3, 2022.Merchandise costing $38,000 was shipped f.o.b. destination by Rudolph to a customer on December 28, 2021. The goods arrived at the customer's location on January 6, 2022.Merchandise costing $12,000 was being held on consignment by Prancer Company. This merchandise was not included in the physical count on December 31, 2021.What amount should Rudolph Corporation report as inventory in its December 31, 2021 balance sheet?Group of answer choices$367,000$427,000$405,000$325,000

Under FOB destination, titles of goods are transferred to the buyer only when goods are delivered to…

Answered: The Rudolph Corporation's inventory on…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

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The Rudolph Corporation's inventory on December 31, 2021, was $325,000 based on a physical count before considering the following transactions:

Merchandise costing $30,000, shipped f.o.b. shipping point from a supplier on December 30, 2021, was received by Rudolph on January 5, 2022.
Merchandise costing $22,000, shipped f.o.b. destination from a supplier on December 28, 2021, was received by Rudolph on January 3, 2022.
Merchandise costing $38,000 was shipped f.o.b. destination by Rudolph to a customer on December 28, 2021. The goods arrived at the customer's location on January 6, 2022.
Merchandise costing $12,000 was being held on consignment by Prancer Company. This merchandise was not included in the physical count on December 31, 2021.

What amount should Rudolph Corporation report as inventory in its December 31, 2021 balance sheet?

Group of answer choices

$367,000

$427,000

$405,000

$325,000

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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