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Umatilla Bank and Trust is considering giving Pharoah Company a loan. Before doing so , it decides that further discussions with Pharoah s accountant may
Umatilla Bank and Trust is considering giving Pharoah Company a loan. Before doing so it decides that further discussions with Pharoahs 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.
Pharoah shipped goods costing $ to Hemlock Company FOB shipping point on December The goods are not expected to reach Hemlock 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 Pharoah FOB destination on December and were still in transit at yearend.
Pharoah received goods costing $ on January The goods were shipped FOB shipping point on December by Yanice Co The goods were not included in the physical count.
Pharoah shipped goods costing $ to Ehler of Canada FOB destination on December The goods were received in Canada on January They were not included in Pharoahs physical inventory.
Pharoah 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 $
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