Question

A physical count of Concord Company's inventory at year-end determined that inventory on hand had a value of $1,627,000. Upon further investigation, it was determined that this amount included the following:

1. An inventory purchase of $51,200 made by Concord shipped from Oriole Company on December 28 with terms FOB destination, but not due to be received until January 3.

2.Goods shipped to a customer with a cost of $70,900 with terms FOB destination on December 29, but not expected to reach their destination until January 3.

3. Goods shipped to a customer with a cost of $54,200 with terms FOB shipping point on December 30, but not expected to reach their destination until January 5.

4. Goods held on consignment from Florence Company with a cost $15,800.


Required: Compute the amount that should be reported for inventory on Concord Company's balance sheet at December 31, 2022.

Answer 1

Check the explanation

Step-by-step explanation:

Balance sheet which literally is a statement of financial condition or position of a company, it is a summary of the financial balances of an organization, corporate firm or an individual, whether it is a business partnership, a sole proprietorship, a private limited company, a corporation, or other organization like a Government and her parastatal or not-for-profit entity.

The inventory on Concord Company's balance sheet at December 31, 2022. can be seen below

Inventory as per physical count 1627000

1 -51200

2 0

3 -54200

4 -15800

Balance Sheet 1505800