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need c Jensen Tire had two large shipments in transit at December 31. One was a $130,000 inbound purchase of merchandise (shipped December 28 ,
need c
Jensen Tire had two large shipments in transit at December 31. One was a $130,000 inbound purchase of merchandise (shipped December 28 , free on board shipping point, which arrived at Jensen's recelving dock on January 4. The other shipment was a $95,000 outbound sale of merchandise to a customer, which was shipped and billed by Jensen on December 30 (terms free on board shipping point) and reached the customer on January 3. In taking a physical inventory on December 31, Jensen counted all goods on hand and priced the inventory on the basis of average cost. Determined in this manner, the total inventory amount was $600,000. No goods in transit were included in this figure. Required: a. What amount should appear as inventory on the company's balance sheet ot December 31? b. If the incoming purchase had been shipped free on board destination, what would the correct inventory amount be? c. If the outgoing shipment of merchandise to a customer bad been shipped free on board destinaton, what would the correct inventory amount be. In answering this question, ignore part B and return to the original statement concerning the two shipments. Complete this question by entering your answers in the tabs below. If the outgoing shipment of merchandise to a customer had been shipped free on board destination, what would the correct inventory amount be, In answering this question, ignore part B and return to the original statement concerning the two shipments Step by Step Solution
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