homework 6

Umatilla Bank and Trust is considering giving Wildhorse Company a loan. Before doing so, it decides that further discussions with Wildhorse's accountant may be desirable. One area of particular concern is the Inventory account, which has a year-end balance of: $255,120. Discussions with the accountant reveal the following. 1. Wildhorse shipped goods costing $53,210 to Ayayai Company FOB shipping point on December 28 . The goods are not expected to reach Ayayai until January 12. The goods were not included in the physical inventory because they were not in the warehouse. 2. The physical count of the inventory did not include goods costing $99,580 that were shipped to Wildhorse FOB destination on December 27 and werestill in transit at year-end. 3. Wildhorse received goods costing $23,820 on January 2 . The goods were shipped FOB shipping point on December 26 by Yanice Co. The goods were not included in the physical count. 4. Wildhorse shipped goods costing $46,100 to Ehler of Canada FOB destination on December 30 . The goods were received in Canada on January 8 . They were not included in Wildhorse's physical inventory 5. Wiidhorse received goods costing $44,160 on January 2 that were shipped FOB destination on December 29. Theshipment Was a rushorder that was supposed to arrive December 31 . This purchase was included in the ending inventory of 5255,120. 4. Wildhorse shipped goods costing $46,100 to Ehler of Canada FOB destination on December 30 . The goods were received in Canada on January 8 . They were not included in Wildhorse's physical inventory 5. Wiidhorse received goods costing $44,160 on January 2 that were shipped FOB destination on December 29 . The shipment was a rush order that was supposed to arrive December 31 . This purchase was included in the ending inventory of $255,120. Determine the correct inventory amount on December 31 Correct inventory amount on December 31