Question
Dee Ella sells sports memorabilia. At the end of the period, a physical inventory count of goods actually in the warehouse showed that Dee Ella
Dee Ella sells sports memorabilia. At the end of the period, a physical inventory count of goods actually in the warehouse showed that Dee Ella had $11,000 of goods on hand. Part of that $11,000 included 3,000 of goods being held on consignment for a vendor. Dee Ella had a purchase order (Dee Ella is the buyer) for $8,000 of inventory (FOB destination) that was still in transit. Finally, Dee Ella had sold $6,500 of inventory (FOB destination) that was also still in transit. What is the correct amount of ending inventory that Dee Ella should record on its books?
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