Current Attempt in Progress Gatineau Bank is considering giving Indigo Corporation a short-term bank loan. Before doing so, it decides that further discussions with Indigo's accountant may be desirable. One area of particular concern is the Inventory account, which, according to a recent physical inventory count, has a balance of $301,400 at December 31. This count agreed with the accounting records. Discussions with the accountant revealed the following: 1. 2. 3. 4. 5. 6. Indigo sold goods costing $38,200 to India-based Moghul Company, FOB destination, on December 28. Indigo does not expect the goods to arrive in India until January 12. The goods were not included in the physical inventory count, because they were not in the warehouse. The physical inventory count did not include goods costing $89,100 that a supplier shipped to Indigo, FOB shipping point, on December 27 and that were still in transit at year end. Indigo received goods costing $29,300 on January 2. The goods were shipped FOB shipping point on December 26 by Cellar Corp. The goods were not included in the physical inventory count. Indigo sold goods costing $45,200 to United Kingdom-based Sterling of Britain Ltd., FOB shipping point, on December 30. Sterling received the goods on January 8. They were not included in Indigo's physical inventory count. On December 31, Schiller Corporation had $31,800 of goods held on consignment for Indigo. The goods were not included in the physical inventory count. Included in the physical inventory count were $14,000 of parts for outdated products that the company had not been able to sell. It is unlikely that these obsolete parts will have any other use. Search E