1. (L.O. 4) At December 31, 2014, a physical count of merchandise inventory belonging to Rhoda…

1. (L.O. 4) At December 31, 2014, a physical count of merchandise inventory belonging to Rhoda…

1.       (L.O. 4) At December 31, 2014, a physical count of merchandise inventory belonging to Rhoda Corp. showed $1,000,000 to be on hand. The $1,000,000 was calculated before any potential necessary adjustments related to the following:

·   Excluded from the $1,000,000 was $80,000 of goods shipped f.o.b. shipping point by a vendor to Rhoda on December 30, 2014 and received on January 3, 2015.

·   Excluded from the $1,000,000 was $72,000 of goods shipped f.o.b. destination to Rhoda on December 30, 2014 and received on January 3, 2015.

·   Excluded from the $1,000,000 was $95,000 of goods shipped f.o.b. destination by Rhoda to a customer on December 28, 2014. The customer received the goods on January 4, 2015.

The correct amount to report for inventory on Rhoda’s balance sheet at December 31, 2014 is:

 

a.

$1,072,000.

b.

$1,095,000.

c.

$1,175,000.

d.

$1,247,000.

 

 

1. (L.O. 4) At December 31, 2014, a physical count of merchandise inventory belonging to Rhoda…