Ch08-Wiley -...

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
Presented below is a list of items that may or may not be reported as inventory in a company's December 31 balance sheet.  Indicate which of these items would typically be reported as inventory in the financial statements. If an item should not be reported  as inventory, indicate how it should be reported in the financial statements.      Item in Financial Statement Financial Statement 1. Goods sold on an installment basis (bad debts can be  reasonably estimated). Not reported Not reported 2. Goods out on consignment at another company's store. Inventory Balance sheet 3. Goods purchased f.o.b. shipping point that are in transit at  December 31. Inventory Balance sheet 4. Goods purchased f.o.b. destination that are in transit at  December 31. Not reported Not reported 5. Goods sold to another company, for which our company has  signed an agreement to repurchase at a set price that covers 
Background image of page 1
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 11/08/2011 for the course ECON 102 taught by Professor Smith during the Spring '11 term at Saddleback.

Ask a homework question - tutors are online