Exercise 6-1

Umatilla Bank and Trust is considering giving Blossom Company aloan. Before doing so, it decides that further discussions withBlossom Company’s accountant may be desirable. One area ofparticular concern is the Inventory account, which has a year-endbalance of $250,820. Discussions with the accountant reveal thefollowing. 1. Blossom Company sold goods costing $54,230 to HemlockCompany FOB shipping point on December 28. The goods are notexpected to reach Hemlock until January 12. The goods were notincluded in the physical inventory because they were not in thewarehouse. 2. The physical count of the inventory did not includegoods costing $91,590 that were shipped to Blossom Company FOBdestination on December 27 and were still in transit at year-end.3. Blossom Company received goods costing $24,420 on January 2. Thegoods were shipped FOB shipping point on December 26 by Yanice Co.The goods were not included in the physical count. 4. BlossomCompany sold goods costing $56,030 to Ehler of Canada FOBdestination on December 30. The goods were received in Canada onJanuary 8. They were not included in Blossom Company physicalinventory. 5. Blossom Company received goods costing $39,190 onJanuary 2 that were shipped FOB destination on December 29. Theshipment was a rush order that was supposed to arrive December 31.This purchase was included in the ending inventory of $250,820.Determine the correct inventory amount on December 31. The correctinventory amount on December 31 $Enter a dollar amount

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Reid Wolff
Reid WolffLv2
28 Sep 2019
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