Question
The December 31, 2016, year-end inventory balance of the Raymond Corporation is $224,000. You have been asked to review the following transactions to determine if
The December 31, 2016, year-end inventory balance of the Raymond Corporation is $224,000. You have been asked to review the following transactions to determine if they have been correctly recorded. |
1. | Goods shipped to Raymond f.o.b. destination on December 26, 2016, were received on January 2, 2017. The invoice cost of $37,000 is included in the preliminary inventory balance. |
2. | At year-end, Raymond held $21,000 of merchandise on consignment from the Harrison Company. This merchandise is included in the preliminary inventory balance. |
3. | On December 29, merchandise costing $6,700 was shipped to a customer f.o.b. shipping point and arrived at the customers location on January 3, 2017. The merchandise is not included in the preliminary inventory balance. |
4. | At year-end, Raymond had merchandise costing $22,000 on consignment with the Joclyn Corporation. The merchandise is not included in the preliminary inventory balance. |
Required: |
Determine the correct inventory amount to be reported in Raymonds 2016 balance sheet. |
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