Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Culver Corporation asks you to review its December 31, 2020 inventory values and prepare the adjustments that are needed to the books, The following information

image text in transcribed
image text in transcribed
image text in transcribed
Culver Corporation asks you to review its December 31, 2020 inventory values and prepare the adjustments that are needed to the books, The following information is given to you: 1. Oulver uses the periodic method of recording inventory. A physical count reveals $234,800 of Inventory on hand at December 31, 2020, although the books have not yet been adjusted to reflect the ending inventory. 2. Not included in the physical count of inventory is $10,800 of merchandise purchased on December 15 from Shamsi. This merchandise was shipped to shoping point un December 29 and arrived in January. The invoice arrived and was recorded on December 31. 3. Included in inventory is merchandise sold to Sage on December 30,1.o., destination. This merchandise was shipped after it was counted The Invoice was prepared and recorded as a sale on account for $12,700 on December 31. The merchandise cost $7,330, and Sage received it on January 3, 4. Induded in the count of inventory was merchandise received from Dutton on December 31 with an invoice price of $15,000. The merchandise was shipped to.b, destination. The invoice, which has not yet arrived, has not been recorded. 5. Not included in inventory is $8,400 of merchandise purchased from Growler Industries. This merchandise was received on December 31, after the inventory had been conted. The Invoice was received and recorded on December 30. 6. Induded in inventory was $10,000 of inventory held by Culver on consignment from Jackel Industries. 7. Included in inventory was merchandise sold to Kemp, r.o.b, shipping point. This merchandise was shipped after it was counted on December 31. The invoice was prepared and recorded as a sale for $18.400 on December 31. The cost of this merchandise was $11,300, and Kemp recolved the merchandise on January 5. 13. Excluded from Inventory was carton labelled "Please accept for credit. This carton contained merchandise costing $2,500, which had been told to sistemer for $3,400. Nitry had been made to the books to record the return, but none of the returned merchandise seemed damaged 9. Culver vold $12,200 of Inventory to Simply Corp. for $23,000 on account on December 15, 2020. These items were shipped 1.0.b. shipping point the terms of sale indicate that Simply Corp. will be permitted to return an unlimited amount until May 15, 2021. Culver has never provided unlimited returns in the past and is not able to estimate the amount of any potential returns that simply may make (a) Determine the proper inventory balance for Culver Corporation at December 31, 2020, Inventory December 31, 2020 (unadjusted) Transaction 2 Transaction Transaction 4 Transactions Transaction 8 Question Culver Corporation asks you to review its December 31, 2020 inventory values and prepare the adjustments that are needed to the books. The following information is given to you: 1. Culver uses the periodic method of recording inventory. A physical count reveals $234,800 of inventory on hand at December 31, 2020, although the books have not yet been adjusted to reflect the ending inventory. 2. Not Included in the physical count of Inventory is $10,800 of merchandise purchased on December 15 from ShamsThis merchandise was shipped to shipping point on December 29 and arrived in January. The invoice anived and was recorded on December 31. 3. Induded in inventory is merchandise sold to Sage on December 30, Co., destination. This merchandise was shipped after it was counted. The involce was prepared and recorded as a sale on account for $12,700 on December 31. The merchandise cost $7,330, and Sage received it on January 3. 4. Induded in the count of Inventory was merchandise received from Dutton on December 31 with an invoice price of $15,000. The merchandise was shipped Rob destination, The Invoice, which has not yet arrived, has not been recorded. S. Not included in Inventory is $8,400 of merchandise purchased from Growler Industries. This merchandise was received on December 31, after the inventory had been counted. The invoice was received and recorded on December 30. 6. Induded in inventory was 510,800 of inventory held by Culver on consignment from Jackel Industries 7. Included in inventory was merchandise sold to Kemp 1.0.b. shipping point. This merchandise was shipped after it was counted on December 31. The invoice was prepared and recorded as a sale for $18,400 on December 31. The cost of this merchandise was $11.300, and Kemp received the merchandise on January 5, 8. Excluded from inventory was a carton labelled "please accept for credit." This carton contained merchandise costing $2,500, which had been sold to a customer for $3,400. No entry had been made to the books to record the return, but none of the returned merchandise seemed damaged. 9. Culver sold $12,200 of inventory to Simply Corp. for $23,000 on account on December 15, 2020. These items were shipped f.o.b, shipping point. The terms of sale indicate that Simply Corp, will be permitted to return an unlimited amount until May 15, 2021. Culver has never provided unlimited returns in the past and is not able to estimate the amount of any potential returns that Simply may make. Determine the proper inventory balance for Culver Corporation at December 31, 2020. $ Inventory December 31, 2020 (unadjusted) Transaction 2 Transaction 3 Transaction 4 Transaction 5 Transaction 6 Transaction 7 Transaction 8 Transaction 9 Inventory December 31, 2020 (adjusted)

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

Managerial Accounting

Authors: James Jiambalvo

4th edition

9780470546888, 9780470333341, 470546883, 470333340, 978-0470578797

More Books

Students also viewed these Accounting questions

Question

please try to give correct answer 4 3 3 . .

Answered: 1 week ago