ABC Limited is trying to determine the value of its ending inventory at February 28, 2021, the

company's yearend. The accountant counted everything that was in the warehouse as of February

28, which resulted in an ending inventory valuation of $48,000. However, she didn't know how to

treat the followine transactions so she didn't record them.

(a) On February 26, ABC shipped to a customer goods costing $800. The goods were shipped FOB

shipping point, and the receiving report indicates that the customer received the goods on March.

(b) On February 26, XYZ Co. shipped goods to ABC FOB destination. The invoice price was $350.The

receiving report indicates that the goods were received by ABC on March 2.

(c) ABC had $500 of inventory at a customer's warehouse "on approval." The customer was going

tolet ABaknow whether it wanted the merchandise ov the end or the weex. March 4

(d) ABC also had $400 of inventory on consignment at XYZ Company,

(e) On February 26, ABC ordered goods costing $750. The goods were shipped FOB shipping point

on February 27. ABC received the goods on March 1.

(f) On February 28, ABC packaged goods and had them ready for shipping to a customer FOB

destination. The invoice price was $350; the cost of the items was $250.The receiving report

indicates that the goods were received by the customer on March 2.

B) AbC had damaged goods set aside in the warehouse because they are no longer saleable. These

goods originally cost $400 and, originally, ABC expected to sell these items for $600.

Required: For each of the above transactions, specify whether the item in question should be

included in ending inventory, and if so, at what amount.

For each item that is not included in ending inventory, indicate who owns it and what account, it

anv. It should nave been recorded in.

1. ABC Limited is trying to determine the value of its ending inventory at February 28, 2021, the company's yearend. The accountant counted everything that was in the warehouse as of February 28, which resulted in an ending inventory valuation of $48,000. However, she didn't know how to 2 of 2 treat the following transactions so she didn't record them. (a) On February 26, ABC shipped to a customer goods costing $800. The goods were shipped FOB shipping point, and the receiving report indicates that the customer received the goods on March. (b) On February 26, XYZ Co. shipped goods to ABC FOB destination. The invoice price was $350. The receiving report indicates that the goods were received by ABC on March 2. (c) ABC had $500 of inventory at a customer's warehouse "on approval." The customer was going to let ABC know whether it wanted the merchandise by the end of the week, March 4. (d) ABC also had $400 of inventory on consignment at XYZ Company (e) On February 26, ABC ordered goods costing $750. The goods were shipped FOB shipping point on February 27. ABC received the goods on March 1. (1) On February 28, ABC packaged goods and had them ready for shipping to a customer FOB destination. The invoice price was $350; the cost of the items was $250. The receiving report indicates that the goods were received by the customer on March 2. (B) ABC had damaged goods set aside in the warehouse because they are no longer saleable. These goods originally cost $400 and, originally, ABC expected to sell these items for $600. Required: For each of the above transactions, specify whether the item in question should be included in ending inventory, and if so, at what amount. For each item that is not included in ending inventory, indicate who owns it and what account, if any, it should have been recorded in