Cedarbrae Art Sales uses the perpetual inventory system. On September the company's yearend, a physical count was taken of the inventory on hand. The cost of the inventory on hand was determined to be $ However, the accountant has questions about the following items:
On the store shelves, the staff counted paintings held by Cedarbrae on consignment from a local artist. The paintings are included on the inventory count at a cost of $
On September a shipment of goods was sent to a customer, FOB destination. The cost of the goods shipped is $ and freight, which is to be paid by Cedarbrae, will cost $ These items are not included in the inventory count.
On October a freight company delivered goods that cost $ to Cedarbrae's warehouse. The goods had been shipped by the vendor on September FOB shipping point. Freight on this shipment will amount to $ and will be paid by the appropriate party. The goods are not included on the inventory count. $
On September a loyal customer visited Cedarbrae's retail shop and asked that certain items be set aside for him. The goods set aside have a cost of $ The customer intends to let Cedarbrae know no later than October whether or not he wishes to finalize the sale and have the goods shipped to his home. The freight will cost $ and will be paid by Cedarbrae. The sales person was fairly sure the customer will take the items; and so prepared the sales invoice on September The items are not included on the inventory count.
Residing in Cedarbrae's warehouse is merchandise costing $ that was purchased in Septem' be defective. Cedarbrae's purchasing manager has arranged with the vendor to accept return of thy packaged them for return shipment. The vendor processed a credit to Cedarbrae's account on Septentert has arranged to have the goods picked up on October The items are included on the inventory count.
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