Financial accounting 16th Edition by Jan Williams,Susan Haka,Mark Bettner ,Joseph Carcello

Exercise 60

Jensen Tire had two large shipments in transit at December 31.ne was a $130,000 inbound shipment of merchandise (shipped December 28, F.O.B.hipping point), which arrived at Jensen's receiving dock on January 2.he other shipment was a $95,000 outbound shipment of merchandise to a customer, which was shipped and billed by Jensen on December 30 (terms F.O.B.hipping point) and reached the customer on January 3.
In taking a physical inventory on December 31, Jensen counted all goods on hand and priced the inventory on the basis of average cost.he total inventory amount was $600,000.o goods in transit were included in this figure.
What amount should appear as inventory on the company's balance sheet at December 31 Explain.f you indicate an amount other than $600,000, state which asset or liability other than inventory also would be changed in amount, assuming that all inventory purchases are made on credit.