At December 31, 2016, Nash Corporation reported current assets of $389,780 and current liabilities of $189,600. The following items may have been recorded incorrectly.
1. Goods purchased costing $20,180 were shipped f.o.b. shipping point by a supplier on December 28. Nash received and recorded the invoice on December 29, 2016, but the goods were not included in Nashâs physical count of inventory because they were not received until January 4, 2017. Ans: 2.05
2. Goods purchased costing $15,740 were shipped f.o.b. destination by a supplier on December 26. Nash received and recorded the invoice on December 31, but the goods were not included in Nashâs 2016 physical count of inventory because they were not received until January 2, 2017.
3. Goods held on consignment from Claudia Kishi Company were included in Nashâs December 31, 2016, physical count of inventory at $13,700. 4. Freight-in of $2,750 was debited to advertising expense on December 28, 2016.
At December 31, 2016, Nash Corporation reported current assets of $389,780 and current liabilities of $189,600. The following items may have been recorded incorrectly.
1. Goods purchased costing $20,180 were shipped f.o.b. shipping point by a supplier on December 28. Nash received and recorded the invoice on December 29, 2016, but the goods were not included in Nashâs physical count of inventory because they were not received until January 4, 2017. Ans: 2.05
2. Goods purchased costing $15,740 were shipped f.o.b. destination by a supplier on December 26. Nash received and recorded the invoice on December 31, but the goods were not included in Nashâs 2016 physical count of inventory because they were not received until January 2, 2017.
3. Goods held on consignment from Claudia Kishi Company were included in Nashâs December 31, 2016, physical count of inventory at $13,700. 4. Freight-in of $2,750 was debited to advertising expense on December 28, 2016.
