Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Blossom Limited is trying to determine the value of its ending inventory as of February 28. 2022. the compa ni/ s year-end. The accountant counted

image text in transcribedimage text in transcribed
Blossom Limited is trying to determine the value of its ending inventory as of February 28. 2022. the compa ni/ s year-end. The accountant counted everything that was in the warehouse as of February 28, which resulted in an ending inventory valuation of $59,520. However. she didn't know how to treat the following transactions so she didn't record them. 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. a. On February 26. Blossom shipped to a customer goods costing $992. The goods we re shipped FOB shipping point. and the receiving report indicates that the customer received the goods on March 2 b. On February 26. Crane Inc. shipped goods to Blossom FOB destination. The invoice price was $434 plus $42 for freight. The receiving report indicates that the goods were received by Blossom on March 2. c. Blossom had 5620 of inventory at a customer's warehouse "on approval." The customer was going to let Blossom know whether it wanted the merchandise bythe end of the week. March 4. d. Blossom also had $496 of inventory at a Cullumber craft shop. on consignment from Blossom. e. On February 26. Blossom ordered goods costing $930. The goods were shipped FOB shipping point on February 2?. Blossom received the goods on March 1. f. On February 28. Blossom packaged goods and had them ready for shipping to a customer FOB destination. The invoice price was $434 plus $42 for freight; the cost of the items was $356. The receiving report indicates that the goods were received by the customer on March 2. g. Blossom had damaged goods set aside in the warehouse because they are no longer salea ble. These goods originally cost $496 and. originally: Blossom expected to sell these items for $?44. Blossom Limited is trying to determine the value of its ending inventory as of February 28, 2022, the company's year-end. The accountant counted everything that was in the warehouse as of February 28, which resulted in an ending inventory valuation of $59,520. However, she didn't know how to treat the following transactions so she didn't record them. 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. S S S S Sales Revenue and Accounts Receivable accounts No entry is recorded. Loss account

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

Accounting Equations & Answers

Authors: Barcharts, BarCharts Inc

1st Edition

1423218248, 9781423218241

More Books

Students also viewed these Accounting questions

Question

Mortality rate

Answered: 1 week ago

Question

Armed conflicts.

Answered: 1 week ago