Buffalos Motors had the following inventory situations to consider at its December 31 year end. Physical inventory
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Question:
Buffalo’s Motors had the following inventory situations to consider at its December 31 year end. Physical inventory count was $15,650.
1. | Pete’s Propellers had $1,300 of goods held on consignment that were included in Buffalo’s physical inventory count. | ||
2. | Goods that cost $925 were sold to Walter’s Wings and shipped FOB destination on December 28. The goods were not expected to arrive at Walter’s until January 4. These goods were not included in the physical inventory count. | ||
3. | Goods purchased from a supplier, Mike’s Motors, for $2,750 were not received until January 2. The goods were shipped FOB shipping point on December 29 and were not included in the physical count. |
Determine the correct inventory balance.
Correct inventory amount |
Related Book For
Financial Accounting Tools for Business Decision Making
ISBN: 978-1118644942
6th Canadian edition
Authors: Paul D. Kimmel, Jerry J. Weygandt, Donald E. Kieso, Barbara Trenholm, Wayne Irvine
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