Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

AaBb CcDdi AaBbCcDdE AaBbCcDdE AaBbcc Heading 9 Normal No Spacing Heading 1 The inventory ledger account balance on June 30, 2019, was $15,300, and net

image text in transcribed
AaBb CcDdi AaBbCcDdE AaBbCcDdE AaBbcc Heading 9 Normal No Spacing Heading 1 The inventory ledger account balance on June 30, 2019, was $15,300, and net realisable value for each product line exceeded the cost. The cost of inventory on hand June 30, 2019, determined by physical count, however, was only $15,156. In investigating the reasons for the discrepancy, Boodja-Dooga Ltd discovered the following. Goods costing $174 were sold for $220 (GST Inclusive) on June 26, 2019, on FOB destination (seller pays shipping) shipping terms. The goods were in transit on June 30, 2019. The sale was recorded on June 26, 2019, and the goods were not included in the physical count. Goods costing $198 (GST Inclusive) were ordered on June 24, 2019, on FOB shipping point shipping terms. The goods were delivered to the transport company on June 27, 2019. The purchase was recorded on June 27, 2019, but, as the goods had not yet arrived, the goods were not included in the physical count. Goods costing $280 held on consignment for Richmond Ltd were included in the physical count Required Prepare any journal entries required on June 30, 2019, to correct any errors and to adjust the inventory account. No Post Ref required. Refer to the provided Chart of Accounts for the appropriate account names. Date 2019 Account Post Ref Debit Credit To record reversal of error in recording of sales of item on FOB Destination shipping terms To record items "sold" back into inventory To record inventory lost or missing AaBb CcDdi AaBbCcDdE AaBbCcDdE AaBbcc Heading 9 Normal No Spacing Heading 1 The inventory ledger account balance on June 30, 2019, was $15,300, and net realisable value for each product line exceeded the cost. The cost of inventory on hand June 30, 2019, determined by physical count, however, was only $15,156. In investigating the reasons for the discrepancy, Boodja-Dooga Ltd discovered the following. Goods costing $174 were sold for $220 (GST Inclusive) on June 26, 2019, on FOB destination (seller pays shipping) shipping terms. The goods were in transit on June 30, 2019. The sale was recorded on June 26, 2019, and the goods were not included in the physical count. Goods costing $198 (GST Inclusive) were ordered on June 24, 2019, on FOB shipping point shipping terms. The goods were delivered to the transport company on June 27, 2019. The purchase was recorded on June 27, 2019, but, as the goods had not yet arrived, the goods were not included in the physical count. Goods costing $280 held on consignment for Richmond Ltd were included in the physical count Required Prepare any journal entries required on June 30, 2019, to correct any errors and to adjust the inventory account. No Post Ref required. Refer to the provided Chart of Accounts for the appropriate account names. Date 2019 Account Post Ref Debit Credit To record reversal of error in recording of sales of item on FOB Destination shipping terms To record items "sold" back into inventory To record inventory lost or missing

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Culture Audits Supporting Organizational Success Information Line

Authors: Cynthia Solomon

1st Edition

156286386X, 978-1562863869

More Books

Students also viewed these Accounting questions

Question

How do you experience the id?

Answered: 1 week ago