Problem #6: Falcon Company counts inventory at the end of the current year and arrives...
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Accounting
Problem #6:
Falcon Company counts inventory at the end of the current year and arrives at a cost of $300,000. Assume that each of the following four situations is independent of the others. In each case, assume that the inventory in question was not included in the count that was taken at the end of the year.
Situation A: Inventory costing $10,000 was sold by Ace for $16,000 on credit and shipped to the customer on December 29 and arrived on January 3. The shipment was marked FOB destination. If Ace reported $300,000 in inventory on its balance sheet, what amount should have been reported?
Situation B: Inventory costing $11,000 was shipped from the seller on December 29 and received by Ace on January 3. The shipment was marked FOB destination. If Ace reported $300,000 in inventory on its balance sheet, what amount should have been reported?
Situation C: Inventory costing $12,000 was sold by Ace for $17,000 on credit and shipped to the customer on December 30 and arrived on January 4. The shipment was marked FOB shipping point. If Ace reported $300,000 in inventory on its balance sheet, what amount should have been reported?
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