Question
Sunland Phone Inc. took a physical inventory at the end of the year and determined that $783000 of goods were on hand. In addition, the
Sunland Phone Inc. took a physical inventory at the end of the year and determined that $783000 of goods were on hand. In addition, the following items were not considered when taking the final physical count. Sunland Phone noted that $43500 of goods purchased FOB destination and in transit at year-end arrived two days after year-end. Additionally, because of high rates of return on some products, Sunland Phone has established an estimate of items that will be returned of $29000, What amount should Sunland Phone report in their year-end balance sheet for the inventory account?
(a) 812000
(b) 855500
(c) 754000
(d) 783000
When I do the calculations, I end up with the answer of 797,500 which is incorrect. Please provide answer and explanation please!
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