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Question 1 of 5 View Policies Show Attempt History Current Attempt in Progress X Your answer is incorrect. > Sheridan Decor did not have a good year, and top management is under pressure to boost reported income. According to its records, the inventory balance at year-end was $731,000. However, the following information was not considered when determining that amount. 1. Prepare a schedule to determine the correct inventory amount. (If an amount reduces the account balance then enter with a negative sign preceding the number, e.g. -15,000, or parenthesis e.g. (15,000). Enter O if there is no effect.) 2. Ending inventory-as reported 0/2 E Included in the company's count were goods with a cost of $250,000 that the company is holding on consignment. The goods belong to Kroeger Company. The physical count did not include goods purchased by Sheridan with a cost of $31,000 that were shipped FOB destination on December 28 and did not arrive at Sheridan warehouse until January 3. 111

Sheridan Decor did not have a good year, and top management is under pressure to boost reported income. According to its records, the inventory balance at year-end was $731,000. However, the following information was not considered when determining that amount. Prepare a schedule to determine the correct inventory amount. (If an amount reduces the occount balance then enter with a negative sign preceding the number, eg. 15,000, or parenthesis eg. (15,000). Enter 0 if there is no effect.) Ending inventory-as reported $ 1. Included in the company's count were goods with a cost of $250,000 that the company is holding on consignment. The goods belong to Kroeger Company. 2. The physical count did not include goods purchased by Sheridan with a cost of $31,000 that were shipped FOB destination on December 28 and did not arrive at Sheridan warehouse until January 3. until January 3. 3. Included in the inventory account was $8,000 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 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 shipping terms were FOB shipping point. The goods had a selling price of $30,000 and a cost of $30,000. The goods were not included in the count because they were sitting on the dock. 5. On December 29 , Sheridan shipped goods with a selling price of $74,000 and a cost of $60,000 to Macchia Company FOB shipping point, The goods arrived on January 3. Macchia had only ordered goods with a selling price of $11,000 and a cost of $8,000. However, a sales manager at Sheridan had authorized the shipment and said that if Macchia wanted to ship the goods back next week, it could. 6. Included in the count was $31,000 of outdated products that were unlikely to be sold. Management determined that they had a net realizable value of $0. Correct inventory s

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