SPD Company ("SPD") asks you to review its inventory values at 31 December 2021, and preparethe necessary adjustments to the books. The following information is given to you.(1) SPD uses the periodic method of recording inventory. A physical count reveals $78,819 ofinventory on hand at 31 December 2021.(2) Not included in the physical count of inventory is $11,690 of merchandise purchased on 13December from MILL. This merchandise was shipped f.a.b shipping point on 22 Decemberand arived in January. The invoice arrived and was recorded on 31 December.(3) Included in inventory is merchandise sold to DES on 17 December, f.o.b destination. Thismerchandise was shipped after it was counted. The invoice was prepared and recorded as asale on account for $13,298 on 31 December. The merchandise cost $10,210, and DESreceived it on 4 January.(4) Included in inventory was merchandise received from BCC on 31 December with an invoiceprice of S16,625. The merchandise was shipped f.o.b. destination. The invoice, which hasnot yet arrived, has not been recorded.(5) Included in inventory was S10,928 of inventory held by SPD on consignment from ROCKIndustries.(6) Included in inventory is merchandise sold to TIMI fo.b shopping point. This merchandisewas shipped after it was counted. The invoice was prepared and recorded as a sale forS11,200 on 31 December. The cost of this merchandise was $8,200, and TIMI received themerchandise on 11 January.(7) Excluded from inventory was a carton labeled "Please accept for credit.". This cartoncontains merchandise costing S1,300 which had been sold to a customer for $2,100. No entryhad been made to the books to reflect the return, but none of the retumed merchandise seemeddamaged.Required:(a) Determine the proper inventory balance for SPD Company at 31 December 2021.(b) Prepare any correcting entries to adjust inventory and related accounts to their properamounts at 31 December 2021. Assume the book has not been closed.

Name: SPD Company ("SPD") asks you to review its inventory values at 31 Dec
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Description: SPD Company ("SPD") asks you to review its inventory values at 31 December 2021, and preparethe necessary adjustments to the books. The following information is given to you.(1) SPD uses the periodic method of recording inventory. A physical count r

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uses the periodic method of recording inventory. A pi tory on hand at 3I December 2021. included in the physical count of inventory is SI1,690 cmber from MILL This merchandise was shipped fab arived in January. The invoice arrived and was recorde ded in inventory is menchandise sold to DES on 17 De chandise was shipped afier it was counted. The invoice on account for $13.298 on 31 December. The merch ived it on 4 January. ded in inventory was merchandise received from BCC e of S16,625. The merchandise was shipped fah desti yet amrived, has not been recorded. ded in inventory was $10.928 of inventory held by SP

uses the periodic method of recording inventory. A pi tory on hand at 3I December 2021. included in the physical count of inventory is SI1,690 cmber from MILL This merchandise was shipped fab arived in January. The invoice arrived and was recorde ded in inventory is menchandise sold to DES on 17 De chandise was shipped afier it was counted. The invoice on account for $13.298 on 31 December. The merch ived it on 4 January. ded in inventory was merchandise received from BCC e of S16,625. The merchandise was shipped fah desti yet amrived, has not been recorded. ded in inventory was $10.928 of inventory held by SP

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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