Premier Bank and Trust is considering giving Waterway Company a loan. Before doing so, they decide...

  

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Premier Bank and Trust is considering giving Waterway Company a loan. Before doing so, they decide that further discussions with Waterway's accountant may be desirable. One area of particular concern is the inventory account, which has a year-end balance of $273,840. Discussions with the accountant reveal the following. 1. 2. 3. 4. 5. Waterway received goods costing $41,160 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 included in the ending inventory of $273,840. Waterway sold goods costing $34,440 to Cusa Company, FOB shipping point, on December 28 for $54,600. The goods are not expected to arrive at Cusa until January 12. The goods were not included in the physical inventory because they were not in the warehouse. The physical count of the inventory did not include goods costing $74,760 that were shipped to Waterway FOB destination on December 27 and were still in transit at year-end. Waterway received goods costing $22,680 on January 2. The goods were shipped FOB shipping point on December 26 by Noble Co. The goods were not included in the physical count. Waterway sold, for $46,200 goods costing $31,920 to Limerick Co., FOB destination, on December 30. The goods were received at Limerick on January 8. They were not included in Waterway's physical inventory. Determine the correct inventory amount on December 31. The correct inventory amount on December 31 $ Premier Bank and Trust is considering giving Waterway Company a loan. Before doing so, they decide that further discussions with Waterway's accountant may be desirable. One area of particular concern is the inventory account, which has a year-end balance of $273,840. Discussions with the accountant reveal the following. 1. 2. 3. 4. 5. Waterway received goods costing $41,160 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 included in the ending inventory of $273,840. Waterway sold goods costing $34,440 to Cusa Company, FOB shipping point, on December 28 for $54,600. The goods are not expected to arrive at Cusa until January 12. The goods were not included in the physical inventory because they were not in the warehouse. The physical count of the inventory did not include goods costing $74,760 that were shipped to Waterway FOB destination on December 27 and were still in transit at year-end. Waterway received goods costing $22,680 on January 2. The goods were shipped FOB shipping point on December 26 by Noble Co. The goods were not included in the physical count. Waterway sold, for $46,200 goods costing $31,920 to Limerick Co., FOB destination, on December 30. The goods were received at Limerick on January 8. They were not included in Waterway's physical inventory. Determine the correct inventory amount on December 31. The correct inventory amount on December 31 $

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