Explain Whether the Following Items Should Be Included in the Inventory

question 38

Essay

Explain whether the following items should be included in the inventory of Simpson Company.
Item a.Goods sold FOB shipping point by Simpson are in transit to its customer.
Item b.Goods sold FOB destination by Simpson are in transit to its customer.
195.Indicate whether the Inventory account is debited (Dr),credited (Cr),or neither (N)when using a perpetual inventory system to record each of the following transactions:
1._____ The company purchases $3,000 of goods intending to sell them to customers.
2._____ The company returns $200 of damaged goods to the supplier.
3._____ The company pays a shipping firm $685 to ship an order of goods from the supplier to the company.
4._____ The company receives a purchase discount for prompt payment to a supplier.
5._____ Customers return $550 of goods in excellent condition to the company.
6._____ The company sells $4,600 of goods to consumers.
7._____ The company purchases $1,600 of supplies intending to use them internally.
9._____ The company does a physical count and finds three items missing due to shrinkage.

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Definitions:

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