Example #2 : Inventory valuation - gross method Kimi Corp. reported the following transactions with...
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Example #2 : Inventory valuation - gross method Kimi Corp. reported the following transactions with regard to merchandise inventory during the second quarter of 20 xx1, April 1 to June 30 . Shipped $5,000 of its merchandise to Lexi Inc. Lexi has agreed to sell this inventory on the behalf of Kimi Corp. Kimi purchased 108,000 units priced at $23 per unit under invoice terms 2//15,n//40. The goods were shipped F.O.B destination and arrived at Kimi's docks on April 15. Kimi did not pay in the discount window and returned 750 units on June 19. Kimi purchased $9,100 units priced at $27 per unit under terms 2//15,n//30. The goods were shipped on June 20, F.O.B destination, and were still in
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