Question

4076 Question 6 Larkspur Comans you to review its December 31, 2017, vertory vales and prepare the nee d s to the back. The gomation is given to you 1. Larkspur uses the periodic method of recording inventory. A physical count reveals $270,124 of inventory on hand at December 31, 2017 2. Not Included in the physical count of inventory is $15.433 of merchand purch on December 15 from The nde hoedas D on December 20 and ved in the arrived and was recorded on December 31 3. Indluded in inventory is merchandise sold to Champy on December 30, ob destination. This merchandise was shipped after it was counted. The invoice was prepared and recorded as sean account for $14.720 on December 31. The merchandise cost 1453, and home received on January 3 4. Induced in many was merchandise received from Dudy on December with an invoice price of $17,075. The merchandise was shipped to be destination. The invoice, which has not yet ed, has not been recorded. 5. Not included in inventory is 9,821 of merchandise purchased from Glowser Industries. This merchandise was received on December the bes t the received and recorded on December 6. Induded in inventory was $12,004 of inventory held by Larkspur on consignment from acel Industries 7. Induced in Inventory ismerhandise sold to keep shiing point. This marchandishidan Darber h nd $21,735 on December 31. The cost of th e 12 t he merchandise on any 8. Exduted from inventory was a carton labeled Please accept for credit this canton contains merchandise Couting $1,725 which had been sold to a customer for $2.990 N y had been made to the books to reflect the return, but none of the returned merchandises ned damaged: Laut will on the rem (a) Determine the proper Inventory balance for larger Company December 31, 2017 Inventory balance as on December 31, 2017 Chical you would like to show Work for this t o show wark

Answer 1

No. 1 Physical inventory 2 Add: inventory purchased and invoice received 3 Less: Inventory sold 4 Less: Inventory purchased but not invoiced Amount Explanation 270,124 The invoice was received and recorded in December. Thus accounts payable will increase but 15,433 inventory will not violating the dual aspect. (8,453) Cost of goods sold is recorded in december but inventory is not reduced. (17,975) The invoice was not received and recorded in December The invoice was received and recorded in December. Thus accounts payable will increase but 9,821 inventory will not violating the dual aspect. (12,004) The owner of the inventory is still the supplier. (12,098) Cost of goods sold is recorded in december but inventory is not reduced. 1,725 Inventory returned not recorded $ 246,573 5 Add: inventory purchased and invoice received 6 Less: Inventory on consignment 7 Less: Inventory sold 8 Add: Invenory returned Inventory balance as on December 12, 2017 Physical inventory Less: Prepetual inventory Abnormal loss 270,573 (246,573) 24,000

No. Date Credit ($) Juurral Account Titles and Explanation Abnormal Loss Inventory (To record the abnormal loss due to inventory valuation) Debit ($) 24,000 24,000