For Each of the Following,calculate the Cost of Inventory Reported $\$ 73,000$

question 72

Essay

For each of the following,calculate the cost of inventory reported on the balance sheet.
(a) The total merchandise inventory counted at the end of the year was $\$ 73,000$ . Purchases for $\$ 5,000$ are in transit under $\mathrm { FOB }$ shipping point terms.

(b) The total merchandise inventory counted at the end of the year was $\$ 75,000$ . Purchases for $\$ 5,000$ are in transit under $\mathrm { FOB }$ destination point terms.

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Definitions:

Attention

The cognitive process of selectively concentrating on one aspect of the environment while ignoring others.

Mnemonic Devices

Techniques used to aid in the memorization and retrieval of information, typically through the use of patterns, phrases, or associations.

Visual Imagery

The process of creating mental images in one's mind, reflecting sights in the absence of direct visual input.

Korsakoff's Syndrome

A long-term memory condition resulting from a critical lack of thiamine (vitamin B1), commonly linked to alcohol abuse.