Happy Harbor, a retail seller of boating accessories, physically counts its $12/31/20$X$2$ inventory determining that $$65,000$ of

merchandise was on hand as of this date.

i$.$ During the physical count, Happy discovered $$2,000$ of goods were destroyed by rodents and because these items were

completely ruined, they were tossed in the garbage.

ii$.$ It was noted that $$5,000$ of merchandise had been shipped to Happy by a vendor on $12/30/20$X$2$ with terms FOB destination.

The goods arrived at Happy$$s location on $1/02/20$X$3.$

iii. It was noted that $$4,000$ of merchandise had been shipped by Happy to a customer on $12/29/20$X$2$ with terms FOB

destination. The goods arrived at the customer$$s location on $1/04/20$X$3.$

iv$.$ It was noted that $$6,000$ of merchandise was on consignment with a local yacht club located a few towns over.

Before considering the above information, Happy$$s general ledger reports $$82,000$ of merchandise inventory as of $12/31/20$X$2$ and

$$116,000$ of cost of goods sold for the twelve months ended $12/31/20$X$2.$ What is the value of Happy$$s $20$X$2$ cost of goods sold after

considering the above $($iv$)$ items and all entries resulting from the physical inventory count?

  

Answer rating: 100% (QA)

To calculate Happy Harbors 20X2 cost of goods sold COGS after considering the given items and all en... View the full answer