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Posted: February 23rd, 2020
Help with Accounting Question (5-13)SP
Assessment Brief
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Tri-State Bank and Trust is considering giving Josef Company a loan. Before doing so, management decides that further discussions with Josef’s accountant may be desirable. One area of particular concern is the inventory account, which has a year-end balance of $327,360. Discussions with the accountant reveal the following.1. Josef sold goods costing $38,800 to Sorci Company, FOB shipping point, on December 28. The goods are not expected to arrive at Sorci until January 12. The goods were not included in the physical inventory because they were not in the warehouse.2. The physical count of the inventory did not include goods costing $90,190 that were shipped to Josef FOB destination on December 27 and were still in transit at year-end.3. Josef received goods costing $26,060 on January 2. The goods were shipped FOB shipping point on December 26 by Solita Co. The goods were not included in the physical count.4. Josef sold goods costing $30,040 to Natali Co., FOB destination, on December 30. The goods were received at Natali on January 8. They were not included in Josef’s physical inventory.5. Josef received goods costing $45,590 on January 2 that were shipped FOB destination on December 29. The shipment was a rush order that was supposed to arrive December 31. This purchase was included in the ending inventory of $327,360.Determine the correct inventory amount on December 31.The correct inventory amount $
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