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Umatilla Bank and Trust is considering giving Wildhorse Co . a loan. Before doing so , it decides that further discussions with Wildhorse's accountant may
Umatilla Bank and Trust is considering giving Wildhorse Co a loan. Before doing so it decides that further discussions with
Wildhorse's 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.
Wildhorse 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 Wildhorse FOB destination
on December and were still in transit at yearend.
Wildhorse 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.
Wildhorse shipped goods costing $ to Ehler of Canada FOB destination on December The goods were received in
Canada on January They were not included in Wildhorse's physical inventory.
Wildhorse 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 $
Determine the correct inventory amount on December
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