Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

At the end of 2018, the biggiecompany performed its annual physical inventory count. John Lawerence, the manager in charge of the physical count, was told

At the end of 2018, the biggiecompany performed its annual physical inventory count. John Lawerence, the manager in charge of the physical count, was told that an additional 22,000 in inventory that had been sold and was in transit to the customer should be included in the ending inventory balance. John was of the opinion that the merchandise shipped should be excluded from the ending inventory since biggie was not in physical possession of the merchandise.

Discuss the situation and indicate why John's opinion might be incorrect.

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

Step: 3

blur-text-image

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

Auditing A Practical Approach With Data Analytics

Authors: Raymond N. Johnson, Laura Davis Wiley, Robyn Moroney, Fiona Campbell, Jane Hamilton

2nd Edition

1119786045, 978-1119785996

More Books

Students also viewed these Accounting questions

Question

=+2. Are you happy to pay a price premium for CSR products?

Answered: 1 week ago