Question
Gutterson Wholesale Company sells merchandise to a variety of retailers. Gutterson uses different freight terms with its various customers and suppliers. All sales are made
Gutterson Wholesale Company sells merchandise to a variety of retailers. Gutterson uses different freight terms with its various customers and suppliers. All sales are made on account. Gutterson's inventory at year-end is reported at $495,365, but you have been asked to verify that with the following information:
a. Gutterson sold merchandise costing $43,600 to Keith Company, with shipping terms F.O.B. shipping point. Keith had not received the merchandise by year-end so Gutterson excluded the inventory from the inventory count.
b. Gutterson purchased inventory costing $92,635 from Seidel Company with shipping terms F.O.B. destination. The inventory had not arrived by year-end so Gutterson did not include it in the inventory count.
c. Gutterson sold merchandise costing $58,500 Donovan Corp. for $75,000. Shipping terms were F.O.B. shipping point, and Donovan had not received the goods by year-end. Since Gutterson was not in possession of the inventory, it was not included in the inventory count.
d. Gutterson's inventory count included goods costing $38,650 held on consignment from Levenstein, Inc.
e. Gutterson's inventory count included equipment costing $86,450.
What should be the correct amount of Gutterson's Inventory, after adjustment?
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