Reeves Company is taking a physical inventory on March 31, the last day of its fiscal year.Which of the following must be included in this inventory count?
A)Goods in transit to Reeves, FOB destination
B)Goods that Reeves is holding on consignment for Parker Company
C)Goods in transit that Reeves has sold to Smith Company, FOB shipping point
D)Goods that Reeves is holding in inventory on March 31 for which the related Accounts Payable is 15 days past due

Question

Quizplus · Accepted Answer

Goods that Reeves is holding in inventory on March 31 should be included in the inventory count, regardless of whether the related Accounts Payable is past due.

Reeves Company Is Taking a Physical Inventory on March 31