At December 31, 2017 Blossom Company inventory records indicated a balance of $654000. Upon further investigation it was determined that this amount included the following:

? $130000 in inventory purchases made by Blossom shipped from the seller 12/27/17 terms FOB destination, but not due to be received until January 2nd
? $72000 in goods sold by Blossom with terms FOB destination on December 27^th. The goods are not expected to reach their destination until January 6^th
? $6400 of goods received on consignment from Dollywood Company

What is Blossom correct ending inventory balance at December 31, 2017?

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Trinidad TremblayLv2

25 Feb 2018

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Exercise 6-1

Umatilla Bank and Trust is considering giving Blossom Company aloan. Before doing so, it decides that further discussions withBlossom Companyâs 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

whiteporpoise291

On December 31 of the current year, Plunkett Company reported an ending inventory balance of $215,000. The following additional information is also available:

Plunkett sold and shipped goods costing $38,000 to Savannah Enterprises on December 28 with shipping terms of FOB shipping point. The goods were not included in the ending inventory amount of $215,000.

Plunkett purchased goods costing $44,000 on December 29. The goods were shipped FOB destination and were received by Plunkett on January 2 of the following year. The shipment was a rush order that was supposed to arrive by December 31. These goods were included in the ending inventory balance of $215,000.

Plunkett's ending inventory balance of $215,000 included $15,000 of goods being held on consignment from Carole Company. (Plunkett Company is the consignee.)

Plunkett's ending inventory balance of $215,000 did not include goods costing $95,000 that were shipped to Plunkett on December 27 with shipping terms of FOB destination and were still in transit at year-end.

Based on the above information, the amount that Plunkett should report in ending inventory on December 31 is:

Multiple Choice

A $194,000

B $209,000

C $200,000

D $171,000

E $156,000

amethystcheetah49

For each of the following potential unrecorded liabilities, determine the effects of the omission on both the balance sheet and income statement of the client. Assume that the inventories recorded on the balance sheet reflect the results of a year-end (December 31) physical inventory. (If there is no effect select "No effect" from dropdown.)

An invoice for $3,000 worth of inventory items, dated January 1 and bearing terms of FOB destination, was not recorded. The goods were shipped December 27 and were received on December 30.

Balance Sheet Effect:

Income Statement Effect:

An invoice for $5,500 worth of inventory items, dated December 30 and bearing terms of FOB destination, was not recorded. The goods were shipped December 28 and received January 2.

Balance Sheet Effect:

Income Statement Effect:

An invoice for $8,000 for a delivery truck, dated January 2 and bearing terms of FOB shipping point, was not recorded. The truck was shipped December 30 and received on January 3.

Balance Sheet Effect:

Income Statement Effect:

An invoice for $1,000 for legal fees rendered in December was not recorded.

Balance Sheet Effect:

Income Statement Effect: