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Practical Company is a retailer that maintains a perpetual inventory system. In order to maintain control it its inventory, Practical performs frequent physical inventory counts.
Practical Company is a retailer that maintains a perpetual inventory system. In order to maintain control it its inventory, Practical performs frequent physical inventory counts. On December 31, 2020 Practical's employees counted the company's goods and determined that $35,000 of goods were on hand as of this date. Practical provides you with the following 5 transaction occurring in the last week of December: 1 December 26, 2020 Goods with a $15.000 purchase price wee shipped FOB Shipping Point from a vender to Practical Company. The goods arrived at Practicalls facility on January 2, 2021 2 December 27, 2020. Goods with a sales price of $28.000 were shipped POB Destination from Practical Company to a customer. The goods toad an original cost to Practical of $10,000 and arrived at the buyer's facility 3.2021 3 December 28, 2020 Goods with a $15.000 purchase price were shipped FOB Destination from a vendar to Practical Company. The goods arrived at Practicalls facility on January 5, 2021 4 December 29, 2020: Goods with a sales price of $28.000 were shipped FOB Shipping Point from Practical Company to a customer. The goods had an original cost te Practical of 10,000 and arrived at the buyer's facility on my 6, 2021 5 December 31, 2020: Goods with a $28.000 sales price were shipped FOB Destination from Practical Company to a customer. The goods had an original cost to Practical of $10,000 and arrived at the buyer's facility 2021 What dollar amount from the physical count should Practical compare to the company's 12/31st general ledger balance? O A. $70,000 B. $35,000 OC. $85,000 OD. $60,000 O E None of the answer choices provided are correct. OF $65,000 O G. $55,000 OH. $80,000
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