Question 3 of 12
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Farley Bains, an auditor with Nolls CPAs, is performing a review of Blossom Company's Inventory account. Blossom did not have
good year, and top management is under pressure to boost reported income. According to its records, the inventory balance at ye
end was $801,620. However, the following information was not considered when determining that amount.
(a1) Prepare a schedule to determine the correct inventory amount. (Show amounts that reduce inventory with a negative sigr
e.g. -45 of parentheses e.?. (45).)
Ending inventory-as reported
1. Included in the company's count were goods with a cost of $205,400 that the
company is holding on consignment. The goods belong to Nader Corporation.
2. The physical count did not include goods purchased by Blossom with a cost of
$40,300 that were shipped FOB shipping point on December 28 and did not
arrive at Blossom's warehouse until January 3.
3. Included in the Inventory account was $16,900 of office supplies that were
stored in the warehouse and were to be used by the company's supervisors
and managers during the coming year.
4. The company received an order on December 29 that was boxed and was
sitting on the loading dock awaiting pick-up on December 31. The shipper
picked up the goods on January 1 and delivered them on January 6. The
goods were FOB shipping point. The goods had a selling price of
included in the count
$
