Tri-State Bank and Trust is considering giving Swifty Company a loan. Before doing so, management decides that further discussions with Swifty's accountant may be desirable. One area of particular concern is the inventory account, which has a year-end balance of $348.000. Discussions with the accountant reveal the following 1. Swifty shipped goods costing $34,000 to Lilja Company, FOB shipping point, on December 28. The goods are not expected to arrive at Lilja until January 12 The goods were not included in the physical inventory because they were not in the warehouse 2. The physical count of the inventory did not include goods costing $94,000 that were shipped to Swifty FOB destination on December 27 and were still in transit at year-end. 3. Swifty received goods costing $24,000 on January 2. The goods were shipped FOB shipping point on December 26 by Brent Co. The goods were not included in the physical count. 4. Swifty shipped goods costing $33,000 to Jesse Co., FOB destination, on December 30. The goods were received at Jesse on January 8. They were not included in Swifty's physical inventory Swifty received goods costing $40,000 on January 2 that were shipped FOB destination on December 29. The shipment was a rush order that was supposed to arrive December 31 This purchase was incduded in the ending inventory of $348.000. 5. Determine the correct inventory amount on December 31 Correct inventory
Tri-State Bank and Trust is considering giving Swifty Company a loan. Before doing so, management decides that further discussions with Swifty's accountant may be desirable. One area of particular concern is the inventory account, which has a year-end balance of $348.000. Discussions with the accountant reveal the following 1. Swifty shipped goods costing $34,000 to Lilja Company, FOB shipping point, on December 28. The goods are not expected to arrive at Lilja until January 12 The goods were not included in the physical inventory because they were not in the warehouse 2. The physical count of the inventory did not include goods costing $94,000 that were shipped to Swifty FOB destination on December 27 and were still in transit at year-end. 3. Swifty received goods costing $24,000 on January 2. The goods were shipped FOB shipping point on December 26 by Brent Co. The goods were not included in the physical count. 4. Swifty shipped goods costing $33,000 to Jesse Co., FOB destination, on December 30. The goods were received at Jesse on January 8. They were not included in Swifty's physical inventory Swifty received goods costing $40,000 on January 2 that were shipped FOB destination on December 29. The shipment was a rush order that was supposed to arrive December 31 This purchase was incduded in the ending inventory of $348.000. 5. Determine the correct inventory amount on December 31 Correct inventory
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Transcribed Image Text:Tri-State Bank and Trust is considering giving Swifty Company a loan. Before doing so, management decides that further discussions
with Swifty's accountant may be desirable. One area of particular concern is the inventory account, which has a year-end balance of
$348,000. Discussions with the accountant reveal the following
1.
Swifty shipped goods costing $34,000 to Lilja Company, FOB shipping point, on December 28. The goods are not expected to
arrive at Lilja until January 12. The goods were notincluded in the physical inventory because they were not in the
warehouse
2.
The physical count of the inventory did not include goods costing $94.000 that were shipped to Swifty FOB destination on
December 27 and were still in transit at year-end
3.
Swifty received goods costing $24,000 on January 2 The goods were shipped FOB shipping point on December 26 by Brent
Co. The goods were not included in the physical count.
4.
Swifty shipped goods costing $33,000 to Jesse Co., FOB destination on December 30. The goods were received at Jesse on
January 8. They were not included in Swifty's physical inventory
5.
Swifty received goods costing $40,000 on January 2 that were shipped FOB destination on December 29. The shipment was a
rush order that was supposed to arrive December 31 This purchase was incduded in the ending inventory of $348.000.
Determine the correct inventory amount on December 31
Correct inventory
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education