At December 31, 2017 Mohling Company's Inventory Records Indicated a Balance

question 193

Multiple Choice

At December 31, 2017 Mohling Company's inventory records indicated a balance of $632,000. Upon further investigation it was determined that this amount included the following:
-$112,000 in inventory purchases made by Mohling shipped from the seller 12/27/17 terms FOB destination, but not due to be received until January 2nd
-$74,000 in goods sold by Mohling with terms FOB destination on December 27^th. The goods are not expected to reach their destination until January 6^th.
-$6,000 of goods received on consignment from Dollywood Company
What is Mohling's correct ending inventory balance at December 31, 2017?

• A)$520,000
• B)$626,000
• C)$440,000
• D)$514,000

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Definitions:

Bank Account

A financial account maintained by a bank or other financial institution in which the financial transactions between a customer and the bank are recorded.

Deposit

Money placed into a bank account or a sum paid in advance as security for the fulfillment of an arrangement.

Different Times

Occurring or existing at varying or distinct moments or periods.

Deposits

Funds placed into a bank account or materials settled in a location or container, accumulating over time.