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777dan777 [17]
3 years ago
15

At December 31, 2017 Pharoah Company's inventory records indicated a balance of $629000. Upon further investigation it was deter

mined that this amount included the following:▪ $122000 in inventory purchases made by Pharoah shipped from the seller 12/27/17 terms FOB destination, but not due to be received until January 2nd▪ $80000 in goods sold by Pharoah with terms FOB destination on December 27th. The goods are not expected to reach their destination until January 6th▪ $7000 of goods received on consignment from Concord CompanyWhat is Pharoah correct ending inventory balance at December 31, 2017?
Business
1 answer:
Sever21 [200]3 years ago
6 0

Answer:

$500000

Explanation:

*Company's inventory records at the begining of the period.  

$629000

*Must be substracted the inventory purchases made by Pharoah shipped from the seller 12/27/17 terms FOB destination, but not due to be received until January 2nd, because it is not yet in power of the company.

- $122000

*Must be substracted the goods received on consignment from Concord Company, because they are not inventory for Pharoah Company.

- $7000

$629000 - $122000 - $7000 = $500000

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