Exercise 8-25

At December 31, 2016, Stellar Corporation reported current assets of $380,540 and current liabilities of $213,700. The following items may have been recorded incorrectly.

1.		Goods purchased costing $20,870 were shipped f.o.b. shipping point by a supplier on December 28. Stellar received and recorded the invoice on December 29, 2016, but the goods were not included in Stellars physical count of inventory because they were not received until January 4, 2017.
2.		Goods purchased costing $15,010 were shipped f.o.b. destination by a supplier on December 26. Stellar received and recorded the invoice on December 31, but the goods were not included in Stellars 2016 physical count of inventory because they were not received until January 2, 2017.
3.		Goods held on consignment from Claudia Kishi Company were included in Stellars December 31, 2016, physical count of inventory at $11,840.
4.		Freight-in of $3,180 was debited to advertising expense on December 28, 2016.