The Kwik Company's inventory balance on December 31, 2024, was $195,000 (based on a 12/31/2024 physical count) before considering the following transactions: 1. Goods shipped to Kwik f.o.b. destination on December 20, 2024, were received on January 4, 2025. The invoice cost was $36,000. 2. Goods shipped to Kwik f.o.b. shipping point on December 28, 2024, were received on January 5, 2025. The invoice cost was $23,000. 3. Goods shipped from Kwik to a customer f.o.b. destination on December 27, 2024, were received by the customer on January 3, 2025. The sales price was $46,000 and the inventory cost $28,000. 4. Goods shipped from Kwik to a customer f.o.b. destination on December 26, 2024, were received by the customer on December 30, 2024. The sales price was $26,000 and the inventory cost $19,000. 5. Goods shipped from Kwik to a customer f.o.b. shipping point on December 28, 2024, were received by the customer on January 4, 2025. The sales price was $31,000 and the inventory cost $18,000. Required: Determine the correct inventory amount to be reported in Kwik's 2024 balance sheet
The Kwik Company's inventory balance on December 31, 2024, was $195,000 (based on a 12/31/2024 physical count) before considering the following transactions: 1. Goods shipped to Kwik f.o.b. destination on December 20, 2024, were received on January 4, 2025. The invoice cost was $36,000. 2. Goods shipped to Kwik f.o.b. shipping point on December 28, 2024, were received on January 5, 2025. The invoice cost was $23,000. 3. Goods shipped from Kwik to a customer f.o.b. destination on December 27, 2024, were received by the customer on January 3, 2025. The sales price was $46,000 and the inventory cost $28,000. 4. Goods shipped from Kwik to a customer f.o.b. destination on December 26, 2024, were received by the customer on December 30, 2024. The sales price was $26,000 and the inventory cost $19,000. 5. Goods shipped from Kwik to a customer f.o.b. shipping point on December 28, 2024, were received by the customer on January 4, 2025. The sales price was $31,000 and the inventory cost $18,000. Required: Determine the correct inventory amount to be reported in Kwik's 2024 balance sheet
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter9: Current Liabilities And Contingent Obligations
Section: Chapter Questions
Problem 1MC: The balance in Ashwood Companys accounts payable account at December 31, 2019, was 1,200,000 before...
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