Wu Corp. buys and sells shoes. On December Wu is facing several scenarios regarding its inventory of shoes:
pairs of shoes were ordered from Kayamori Corp. Kayamori shipped the shoes to Wu fob destination. The shoes have not arrived as of December
pairs of shoes manufactured by Borneman, Inc. are being held by Wu on consignment ifwhen Wu sells the shoes, they will keep a fee and remit the rest of the selling price to Borneman.
pairs of shoes were sold to customers in late December, but those customers have requested permission to return the shoes in resellable condition to Wu but the shoes havent yet arrived as of December
Wu sold pairs of shoes to customers on Wus eCommerce website. The shoes have already been shipped, and the terms of the shipment are fob destination. The shoes havent yet arrived at the customers houses.
Required:
Of the pairs of shoes mentioned in the four bullets above, how many of those pairs of shoes would be correctly reported in Wus December inventory under GAAP? Explain your answers as needed.
