Should the following be in Brown\'s inventory account at 12/31/10? $80,000 of go
ID: 2388543 • Letter: S
Question
Should the following be in Brown's inventory account at 12/31/10?
$80,000 of goods purchased by Brown. Terms were FOB Shipping point and they left the vendor's warehouse on 1/1/11
$30,000 of goods held on consignment for Lucky's.
$25,000 of fire damaged merchandise.
at discounted amount, would be in probably at LCM
$45,000 of products shipped to customer of Brown on 12/20/10 FOB Destination. Goods arrived on 1/3/11
$10,000 of product held by Discount Hardware on consignment from Brown
Should the following be in Brown's inventory account at 12/31/10?
Explanation / Answer
$80,000 of goods purchased by Brown. Terms were FOB Shipping point and they left the vendor's warehouse on 1/1/11
Not in inventory (didn't leave vendor until after 12/31
$30,000 of goods held on consignment for Lucky's.
Not in inventory (belongs to Lucky's)
$25,000 of fire damaged merchandise.
Not in inventory if not saleable. If items could be sold
at discounted amount, would be in probably at LCM
$45,000 of products shipped to customer of Brown on 12/20/10 FOB Destination. Goods arrived on 1/3/11
In inventory (belongs to Brown until 1/3)
$10,000 of product held by Discount Hardware on consignment from Brown
In inventory (Brown's goods)