Wildhorse Company took a physical inventory on December 31 and determined that goods costing $676,000 were on hand. Not included in the physical count were $9,000 of goods purchased from Sandhill Corporation, f.o.b. shipping point, and $29,000 of goods sold to Ro-Ro Company for $37,000, f.o.b. destination. Both the Sandhill purchase and the Ro-Ro sale were in transit at year-end. What amount should Wildhorse report as its December 31 inventory?**December 31 Inventory** $ [Input Field]

In case of sale of 37000 control will transfer when goods reach to destination ,but they are in…

Answered: Wildhorse Company took a physical…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Two different companies, Quick Cleaners and JunkTrader entered into the following inventory transactions during December. Both companies use a perpetual inventory system. • December 3 - Quick Cleaners sold inventory on account to JunkTrader for $550,000, terms 3/10, n/30. This inventory originally cost Quick Cleaners $330,000. . December 8 - JunkTrader returned inventory to Quick Cleaners for a credit of $20,000. Quick Cleaners returned this inventory to inventory at its original cost of $12,000. December 23 - JunkTrader paid Quick Cleaners for the amount owed. Required: Prepare the journal entries to record these transactions on the books of Quick Cleaners using the gross method. Use the MSWord link for the table to write your journal entries. After you have written the journal entries on the table in the MSWord document provided, type in your name below the table on the document, save the document and then upload it to this problem in the upload space provided at the bottom of this…
Whispering Winds Corporation uses a perpetual inventory system and had inventory worth $88,500 at the beginning of the year. Purchases were made during the year for $393,000; however, 10% of these goods were returned to the supplier, and a 3% discount was taken on the remaining balance owing. Whispering Winds paid $3,500 cash for freight to ship the inventory to its location during the year. Whispering Winds reported cost of goods sold for the year of $295,000. Whispering Winds has a calendar year end. What is the balance in the inventory account at the end of the year? Balance If Whispering Winds counted its actual inventory balance as $118,000 at the end of the year, what adjusting entry, if any, would be made? (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. List all debit entries before credit entries.) Date Account Titles and…
TS Quilts Inc. took a physical inventory at the end of the year and determined that $414,000 of goods were on hand. TS Inc. determined that $12,000 of goods held and included in the court were being held on consignment from PDJ outlet. Additionally, because of high rates of return on some products, TS has established an estimate of items that will be returned of $17,000. What amount should TS report in their year-end balance sheet for the inventory account?
Vibrant Company had $970,000 of sales in each of Year 1, Year 2, and Year 3, and it purchased merchandise costing $535,000 in each of those years. It also maintained a $270,000 physical inventory from the beginning to the end of that three-year period. In accounting for inventory, it made an error at the end of Year 1 that caused its Year 1 ending inventory to appear on its statements as $250,000 rather than the correct $270,000. 1. Determine the correct amount of the company's gross profit in each of Year 1, Year 2, and Year 3. 2. Prepare comparative income statements to show the effect of this error on the company's cost of goods sold and gross profit for each of Year 1, Year 2, and Year 3. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Determine the correct amount of the company's gross profit in each of Year 1, Year 2, and Year 3. VIBRANT COMPANY Comparative Income Statements Year 2 Cost of goods sold Cost of goods sold Gross profit Year 1…
At the beginning of November, Yoshi Inc.'s inventory consists of 69 units with a cost per unit of $94. The following transactions occur during the month of November. November 2 Purchase 85 units of inventory on account from Toad Inc. for $100 per unit, terms 3/10, n/30. November 3 Pay cash for freight charges related to the November 2 purchase, $340. November 9 Return 17 defective units from the November 2 purchase and receive credit. November 11 Pay Toad Inc. in full. November 16 Sell 100 units of inventory to customers on account, $12,100. (Hint: The cost of units sold from the November 2 purchase includes $100 unit cost plus $5 per unit for freight loss $3 per unit for the purchase discount, or $102 per unit.) November 20 Receive full payment from customers related to the sale on November 16. November 21 Purchase 51 units of inventory from Toad Inc. for $104 per unit, terms 2/10, n/30. November 24 Sell 60 units of inventory to customers for cash, $7,200. (Note: For calculating the…
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S Vibrant Company had $1,050,000 of sales in each of Year 1, Year 2, and Year 3, and it purchased merchandise costing $575,000 in each of those years. It also maintained a $350,000 physical inventory from the beginning to the end of that three-year period. In accounting for inventory, it made an error at the end of Year 1 that caused its Year 1 ending inventory to appear on its statements as $330,000 rather than the correct $350,000. 1. Determine the correct amount of the company's gross profit in each of Year 1, Year 2, and Year 3. 2. Prepare comparative income statements to show the effect of this error on the company's cost of goods sold and gross profit for each of Year 1, Year 2, and Year 3. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Prepare comparative income statements to show the effect of this error on the company's cost of goods sold and gross profit for each of Year 1, Year 2 Year 3. Cost of goods sold Cost of goods sold Gross…
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Vibrant Company had $1,040,000 of sales in each of Year 1, Year 2, and Year 3, and it purchased merchandise costing $570,000 in each of those years. It also maintained a $340,000 physical inventory from the beginning to the end of that three-year period. In accounting for inventory, it made an error at the end of Year 1 that caused its Year 1 ending inventory to appear on its statements as $320,000 rather than the correct $340,000. 1. Determine the correct amount of the company's gross profit in each of Year 1, Year 2, and Year 3. 2. Prepare comparative income statements to show the effect of this error on the company's cost of goods sold and gross profit for each of Year 1, Year 2, and Year 3. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Determine the correct amount of the company's gross profit in each of Year 1, Year 2, and Year 3. Cost of goods sold Cost of goods sold Gross profit Year 1 0 $ VIBRANT COMPANY Comparative Income Statements…
Denger
Delta Apparel Inc. uses a perpetual inventory system. At the beginning of the year inventory amounted to $ 50,000. During the year, the company purchased merchandise for $ 230,000 and sold merchandise costing $ 245,000. A physical inventory taken at year-end indicated shrinkage losses of $4,000. Prior to the recording of these shrinkage losses, the year-end balance in the companys Inventory account was :- a. $ 31,000 b. $ 35,000 c. $ 50,000 d. $ 55,00
Yarn Imports Corp. is preparing an inventory listing, and is assigning a cost to inventory that arrived on December 29, two days before the end of the year. The following elements of potential cost have been identified: Invoice price; the amount was prepaid when the goods were ordered because the supplier offered a 5%. discount for payment up front. Goods were custom-manufactured for Yarn after the order date. The invoice price was for $74,800, less 5% HST on invoice price, $10,659 Interest on borrowed money between the time the deposit was paid and the goods were delivered, $650 Delivery charges, paid by the supplier, $1,050 Required: Calculate the value to include in inventory of Yarn Imports Corp. Value to be included in inventory $ 72,795

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