$\frac{8\mathrm{.}57}{20}$

Current Attempt in Progress

Your answer is partially correct.

Farley Bains, an auditor with Nolls CPAs, is performing a review of Pharaoh Company's Inventory account. Pharaoh did not have a good year, and top management is under pressure to boost reported income. According to its records, the inventory balance at yearend was $$786,780.$ However, the following information was not considered when determining that amount.

$($a$1)$ Prepare a schedule to determine the correct inventory amount. $($Show amounts that reduce inventory with a negative sign e$.$g$.-45$ or parentheses e$.$g$.(45).)$

Ending inventory$-$as reported

Included in the company's count were goods with a cost of $$226,520$ that the company is holding on consignment. The goods belong to Nader Corporation.

The physical count did not include goods purchased by Pharaoh with a cost of $$40,100$ that were shipped FOB shipping point on December $28$ and did not arrive at Pharaoh's warehouse until January $3.$

Included in the Inventory account was $$18,390$ of office supplies that were stored in the warehouse and were to be used by the company's supervisors and managers during the coming year.