matilla Bank and Trust is considering giving Sage Hill Inc. a loan. Before doing so, it decides that further discussions with Sage Hill Inc.'s accountant may be desirable. One area of particular concern is the Inventory account, which has a ear-end balance of $253,760. Discussions with the accountant reveal the following. Sage Hill Inc. sold goods costing $55,290 to Hemlock Company FOB shipping point on December 28. The goods are not expected to reach Hemlock until January 12. The goods were not induded in the physical inventory because they were not in the warehouse. The physical count of the inventory did not indlude goods costing $96,030 that were shipped to Sage Hill Inc. FOB destination on December 27 and were still in transit at year-end. Sage Hill Inc. received goods costing $26,180 on January 2. The goods were shipped FOB shipping point on December 26 by Yanice Co. The goods were not included in the physical count. Sage Hill Inc. sold goods costing $47,850 to Ehler of Canada FOB destination on December 30. The goods were received in Canada on January 8. They were not included in Sage Hill Inc. physical inventory. Sage Hill Inc. received goods costing $38,560 on January 2 that were shipped FOB destination on December 29. The shipment was a rush order that was supposed to arrive December 31. This purchase was induded in the ending inventory of $253,760. etermine the correct inventory amount on December 31.

AB Co made a credit sale to DE Co for $200,000 on July 19x9. It is known that at the end of 19x9 there was an outstanding receivable of $47,000. Managementestimates that $25,000 will be uncollectible.In July 19x9 the collections department stated that a receivable of $5,000 was written off frombookkeeping because it is impossible to receive payment from DE Co. Unexpectedly monthOctober 19x9 DE Co pays its outstanding debt. Requested:Prepare the adjusting entries and the journals needed to record the above transactions properlythe backup method as well as the direct deletion method!

Farley Bains, an auditor with Nolls CPAS, is performing a review of Teal Mountain Inc.'s Inventory account. Teal Mountain Inc. did not have a good year, and top management is under pressure to boost reported income. According to its records, the inventory balance at year-end was $808,200. However, the following information was not considered when determining that amount. Prepare a schedule to determine the correct inventory amount. (Show amounts that reduce inventory with a negative sign or parenthesis e.g. -45 or parentheses e.g. (45).) 808,200 Ending inventory-as reported $4 1. Included in the company's count were goods with a cost of $224,170 that the company is holding on consignment. The goods belong to Nader Corporation. (224,170) 2. The physical count did not include goods purchased by Teal Mountain Inc. with a cost of $38,530 that were shipped FOB shipping point on December 28 and did not arrive at Teal Mountain Inc.'s warehouse until January 3. 38,530 3. Included in the…

Jackson balanced his Debtors Control Account on 30 September 2005 and it showed a debit balance of $16,300. He checked this balance with the individual debtors' balance in the Debtors Ledger which shows a debit balance of $14,750. When he examined the records, the following errors were found: (i) Goods costing $1,200 had been sold to Summer on credit but the transaction was totally omitted from the books. (ii) Spring was allowed cash discount of $50. This amount was entered correctly in the Cash Book but was recorded on the wrong side of his account. (iii) The Sales Returns Journal showed that a credit note for $200 had been sent to Winter but it had not been posted to Winter's account. (iv) Bad debts written off $1,500 had been recorded in the Sales Ledger but no entry was made in the General Ledger. (v) Autumn's debit balance of $350 had been omitted from the Debtors Ledger balance. You are required to prepare: (a) an adjusted Debtors Control Account; (b) a statement to reconcile the…