In your audit of Ali Company, you find that a physical inventory on December 31, 2014, showed

Question:

In your audit of Ali Company, you find that a physical inventory on December 31, 2014, showed merchandise with a cost of $200,000 was on hand at that date. You also discover the following items were all excluded from the $200,000.
1. Merchandise of $20,000 which is held by Ali on consignment. The consignor is the Max Suzuki Company.
2. Merchandise costing $25,000 which was shipped by Ali f.o.b. destination to a customer on December 31, 2014. The customer was expected to receive the merchandise on January 6, 2015.
3. Merchandise costing $23,000 which was shipped by Ali f.o.b. shipping point to a customer on December 29, 2014. The customer was scheduled to receive the merchandise on January 2, 2015.
4. Merchandise costing $60,000 shipped by a vendor f.o.b. destination on December 30, 2014, and received by Ali on January 4, 2015.
5. Merchandise costing $42,000 shipped by a vendor f.o.b. shipping point on December 31, 2014, and received by Ali on January 5, 2015.

Instructions
Based on the above information, calculate the amount that should appear on Ali’s at December 31, 2014, for inventory.

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...