Sherman, Inc.counted its ending inventory as $178,000 at year-end, January 31, 2016.Upon review of the records, it was noted that the following items were in transit during the count: A)$2,000 of goods shipped by a supplier to Sherman sent FOB destination on January 31 were received February 5, and were not counted by Sherman.
B)$5,000 of goods shipped by a supplier to Sherman sent FOB shipping point on January 30 were received February 2, and were not counted by Sherman.
C)$6,000 of goods shipped by Sherman to a customer FOB shipping point on January 31 were received by the customer February 3, and were counted by Sherman.

Determine the correct inventory balance at January 31.
A) $172,000
B) $174,000
C) $178,000
D) $177,000

Question

Sherman, Inc.counted its ending inventory as $178,000 at year-end, January 31, 2016.Upon review of the records, it was noted that the following items were in transit during the count: A)$2,000 of goods shipped by a supplier to Sherman sent FOB destination on January 31 were received February 5, and were not counted by Sherman.
B)$5,000 of goods shipped by a supplier to Sherman sent FOB shipping point on January 30 were received February 2, and were not counted by Sherman.
C)$6,000 of goods shipped by Sherman to a customer FOB shipping point on January 31 were received by the customer February 3, and were counted by Sherman.
​
Determine the correct inventory balance at January 31.
A) $172,000
B) $174,000
C) $178,000
D) $177,000

Quizplus · Accepted Answer

The Answer of Sherman, Inc.counted its ending inventory as $178,000 at year-end, January 31, 2016.Upon review of the records, it was noted that the following items were in transit during the count: A)$2,000 of goods shipped by a supplier to Sherman sent FOB destination on January 31 were received February 5, and were not counted by Sherman.
B)$5,000 of goods shipped by a supplier to Sherman sent FOB shipping point on January 30 were received February 2, and were not counted by Sherman.
C)$6,000 of goods shipped by Sherman to a customer FOB shipping point on January 31 were received by the customer February 3, and were counted by Sherman.
​
Determine the correct inventory balance at January 31.
A) $172,000
B) $174,000
C) $178,000
D) $177,000