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Sherman, Inc. counted its ending inventory as $178,000 at year-end, January 31, 2017. Upon review of the records, it was noted that the following items
- Sherman, Inc. counted its ending inventory as $178,000 at year-end, January 31, 2017. Upon review of the records, it was noted that the following items were in transit during the count:
A) $2,000 of goods shipped by a supplier to Sherman sent FOB destination point on January 31 were received February 5, and were not counted by Sherman. B) $5,000 of goods shipped by a supplier to Sherman sent FOB shipping point on January 30 were received February 2, and were not counted by Sherman. C) $6,000 of goods shipped by Sherman to a customer sent FOB shipping point on January 31 were received February 3, and were counted by Sherman.
Determine the correct inventory balance at January 31. a.$178,000
b.$177,000
c.$174,000
d.$172,000
| A) | $2,000 of goods shipped by a supplier to Sherman sent FOB destination point on January 31 were received February 5, and were not counted by Sherman. |
| B) | $5,000 of goods shipped by a supplier to Sherman sent FOB shipping point on January 30 were received February 2, and were not counted by Sherman. |
| C) | $6,000 of goods shipped by Sherman to a customer sent FOB shipping point on January 31 were received February 3, and were counted by Sherman. |
a.$178,000
b.$177,000
c.$174,000
d.$172,000
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Introduction to Managerial Accounting
Authors: Peter Brewer, Ray Garrison, Eric Noreen
7th edition
978-0078025792
