Exercise 8-25 (Part Level Submission)

At December 31, 2016, Monty Corporation reported current assets of $344,340 and current liabilities of $192,700. The following items may have been recorded incorrectly.

1.		Goods purchased costing $21,090 were shipped f.o.b. shipping point by a supplier on December 28. Monty received and recorded the invoice on December 29, 2016, but the goods were not included in Montys physical count of inventory because they were not received until January 4, 2017.
2.		Goods purchased costing $16,010 were shipped f.o.b. destination by a supplier on December 26. Monty received and recorded the invoice on December 31, but the goods were not included in Montys 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 Montys December 31, 2016, physical count of inventory at $12,250.
4.		Freight-in of $3,190 was debited to advertising expense on December 28, 2016.

(c) EX Your answer is incorrect. Try again. By what amount will income (before taxes) be adjusted up or down as a result of the corrections? Assume that goods are sold in item it4. Adjust Income 28040 Click if you would like to show Work for this question Open Show Work LINK TO TEXT Attempts: 1 of 3 used