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Premier Bank and Trust is considering giving Waterway Company a loan. Before doing so , they decide that further discussions with Waterway's accountant may be
Premier Bank and Trust is considering giving Waterway Company a loan. Before doing so they decide that further discussions with
Waterway's accountant may be desirable. One area of particular concern is the inventory account, which has a yearend balance of
$ Discussions with the accountant reveal the following.
Waterway received goods costing $ on January that were shipped FOB destination on December The shipment
was a rush order that was supposed to arrive December This purchase was included in the ending inventory of $
Waterway sold goods costing $ to Cusa Company, FOB shipping point, on December for $ The goods are
not expected to arrive at Cusa until January The goods were not included in the physical inventory because they were not
in the warehouse.
The physical count of the inventory did not include goods costing $ that were shipped to Waterway FOB destination
on December and were still in transit at yearend.
Waterway received goods costing $ on January The goods were shipped FOB shipping point on December by
Noble The goods were not included in the physical count.
Waterway sold, for $ goods costing $ to Limerick Co FOB destination, on December The goods were
received at Limerick on January They were not included in Waterway's physical inventory.
a
Your answer is incorrect.
Determine the correct inventory amount on December
The correct inventory amount on December
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