The merchandise inventory in Carla's Clothing Store was counted aft er the close of business on December
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(a) The count included merchandise "on hold" for customers. These items cost $950 and will be held until noon on January 2, 2015. Carla expects at least one-half of the customers will return to purchase the items.
(b) The count also included items costing $1,200 that had been sold but are being held for alterations. The customers have paid in full for these items.
(c) Carla's Clothing Store has $4,250 of merchandise held on consignment for a local designer. These items were included in the inventory count.
(d) A shipment of inventory costing $2,875 was received on January 2, 2015. It had been shipped by the seller on December 30, FOB shipping point. Freight charges are $310. These items were not included in the inventory count.
(e) A second shipment of inventory costing $4,350 was received on January 3, 2015. It had been shipped by the seller on December 31, FOB destination. Freight charges are $390. These items were also not included in the inventory count.
Determine the correct amount of Carla's Clothing Store's merchandise inventory at December 31, 2014.
Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...
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Related Book For
Accounting Principles Part 1
ISBN: 978-1118306789
6th Canadian edition
Authors: Jerry J. Weygandt, Donald E. Kieso, Paul D. Kimmel, Barbara Trenholm, Valerie Kinnear, Joan E. Barlow
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