Ask Question, Ask an Expert


Ask Accounting Basics Expert

Columbia Bank and Trust is considering giving Gallup Company a loan. Before doing so, it decided that further discussions with Gallup's accountant may be desirable. One area of particular concern is the Inventory account, which has a year-end balance of $275,000. Discussions with the accountant reveal the following.

1. Gallup sold goods costing $55,000 to Bazil Company FOB shipping point on December 28. The goods are not expected to reach Brazil until January 12. The goods were not included in the physical inventory because they were not in the warehouse.
2. The physical count of inventory did not include goods costing $95,000 that were shipped to Gallup FOB destination on December 27 and were still in transit at year-end.
3. Gallup received goods costing $25,000 on January 2. The goods were not included in the physical count.
4. Gallup sold goods costing $51,000 to Lamey of Canada FOB destination on December 30. The goods were recieved in Canada on January 8. They were not included in Gallups physical inventory.
5.Gallup received goods costing $42,000 on Jan 2 that were shipped FOB destination on Dec 29. The shipment was a rush order that was supposed to arrive Dec 31. This purchase was included in the ending inventory of $275,000.

Determine the correct inventory amount on Dec. 31.


Accounting Basics, Accounting

  • Category:- Accounting Basics
  • Reference No.:- M947302

Have any Question? 

Related Questions in Accounting Basics

Exercise 1making special pricing decisionssuppose the

Exercise 1 Making special pricing decisions Suppose the Baseball Hall of Fame in Cooperstown, New York, has approached Hungry-Cardz with a special order. The Hall of Fame wishes to purchase 55,000 baseball card packs for ...

Identify and explain the inventory asset and cost flows of

Identify and explain the inventory asset and cost flows of a merchandising company. Provide examples.

Accounting information systems - team based

Accounting Information Systems - Team Based Assignment "Response to Request - For - Proposal (RFP) for an ERP System" Aim: This team based assignment is designed to give you the opportunity to learn about ERP systems and ...

Sanford company -the sanford company had the following

Sanford Company - The Sanford Company had the following balance sheet as of December 31, 20x2.  The transactions for the first three months of 20x3 are also presented along with other information about specific accounts. ...

Assessment item - review of current accounting issuestaskin

Assessment item - Review of Current Accounting Issues Task In your accounting career you will be required to analyse current accounting issues and communicate your theoretical understanding to your professional colleague ...

Learning objective 1 explain accounting language consider

(Learning Objective 1: Explain accounting language) Consider Wal-Mart, a large retailer. Classify the following items as an Asset (A), a Liability (L), or Stockholders' Equity (S) for Wal-Mart: a. Accounts payable b. Com ...

Q1 kay corporation is engaged in the furniture

Q1. Kay Corporation is engaged in the furniture manufacturing business. Following are some of the financial figures of company: Sales                                      Rs. 760,000 Net Profit                            ...

Task - task covers study schedule weeks 5-12 inclusiveq21-

Task - Task covers study schedule weeks 5-12 inclusive. Q2.1- Naming cells in spreadsheets Critically evaluate a YouTube video on naming cells in spreadsheets. What are the advantages of naming cells in formulas Paste an ...

Do the following assignment using microsoft excel

Do the following assignment using Microsoft Excel (handwritten projects will not be accepted) This is an individual assignment, make sure you have included your name, Id and Section no on the printout. Submit in class on ...

Note answer each question completely by supporting

Note: Answer each question completely by supporting conclusions, but do so in a clear and concise manner. I am looking for your explanation 'in your words'; not another authors summary. Therefore, excessive citing of mat ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

A cola-dispensing machine is set to dispense 9 ounces of

A cola-dispensing machine is set to dispense 9 ounces of cola per cup, with a standard deviation of 1.0 ounce. The manuf

What is marketingbullwhat is marketing think back to your

What is Marketing? • "What is marketing"? Think back to your impressions before you started this class versus how you

Question -your client david smith runs a small it

QUESTION - Your client, David Smith runs a small IT consulting business specialising in computer software and techno

Inspection of a random sample of 22 aircraft showed that 15

Inspection of a random sample of 22 aircraft showed that 15 needed repairs to fix a wiring problem that might compromise

Effective hrmquestionhow can an effective hrm system help

Effective HRM Question How can an effective HRM system help facilitate the achievement of an organization's strate