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Question 6 Gatineau Bank is considering giving Ayayal Corporation a short-term bank loan. Before doing so, it decides that further discussions with Ayayai's accountant may

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Question 6 Gatineau Bank is considering giving Ayayal Corporation a short-term bank loan. Before doing so, it decides that further discussions with Ayayai's accountant may be desirable. One area of particular concern is the inventory account, which according to a recent physical inventory count has a balance of $265,600 at December 31. This count agreed with the accounting records Discussions with the accountant reveal the following: 1. Ayayal sold goods costing $32,000 to India-based Moghul Company, FOB destination, on December 28. The goods are not expected to arrive in India until January 12. The goods were not included in the physical inventory count, because they were not in the warehouse 2. The physical inventory count did not include goods costing 5101,800 that were shipped to Ayaya, FOB shipping point, on December 27 and were still in transit at year end. 3. Ayayal received goods costing 526,000 on January 2. The goods were shipped TOB shoping point on December 26 by Cellar Corp. The goods were not included in the physical inventory count 4. Ayayal sold goods conting 144,700 to United Kingdom-based Stering of Britain Lid, Fooping point, on December 30. The goods were received by Sterling on January 8. They were not Included in Ayayai's physical inventory count 5. on December 31, Schiller Corporation had $32,900 of goods held on consignment for Ayayal. The goods were not included in the physical inventory count. 6. Included in the physical inventory count were $13,900 of parts for outdated products that the company had not been able to sell. It is unlikely that these bilete parts will have any other use Determine the correct inventory amount on December 31. (Record the transactions in the order presented in the problem. If an amount reduces the account balance than enter with negative sin preceding the number .. 45 or parentheses 9. (45). If the transaction has "NO EFFECT ON INVENTORY",enter for the amount.) Ending Inventory physical count 1. : 2. 3 . 4. . 5 . 6 Correct inventory

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