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The Records of Thomas Company As of December 31 2014

The document summarizes errors found in Thomas Company's records for December 31, 2014. Goods costing $4,500 that were in transit were not included in inventory, although purchased. Damaged goods of $4,100 included in inventory that were being returned. Inventory of $3,900 incorrectly excluded although not paid for. Goods shipped but not received of $2,700 were recorded as a purchase. Goods of $2,400 set aside for a customer were excluded from inventory despite the sale being recorded.

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49 views1 page

The Records of Thomas Company As of December 31 2014

The document summarizes errors found in Thomas Company's records for December 31, 2014. Goods costing $4,500 that were in transit were not included in inventory, although purchased. Damaged goods of $4,100 included in inventory that were being returned. Inventory of $3,900 incorrectly excluded although not paid for. Goods shipped but not received of $2,700 were recorded as a purchase. Goods of $2,400 set aside for a customer were excluded from inventory despite the sale being recorded.

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Let's Talk With Hassan
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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The records of Thomas Company as of December 31 2014

#4387
The records of Thomas Company as of December 31, 2014, show the following:The accountant
of Thomas Company discovers in the first week of January 2015 that the following errors were
made by his staff.a. Goods costing $4,500 were in transit (FOB shipping point) and were not
included in the ending inventory. The invoice had been received and the purchase recorded.b.
Damaged goods (cost $4,100) that were being held for return to the supplier were included in
inventory. The goods had been recorded as a purchase and the entry for the return of these
goods had also been made.c. Inventory items costing $3,900 were incorrectly excluded from the
final inventory. These goods had not been recorded as a purchase and had not been paid for by
the company.d. Goods that were shipped FOB destination had not yet arrived and were not
included in inventory. However, the invoice had arrived on December 30, 2014, and the
purchase for $2,700 was recorded.e. Goods that cost $2,400 were segregated and not included
in inventory because a customer expressed an intention to buy the goods. The sale of the
goods for $4,200 had been recorded in December 2014.Required:Using the format provided
above, show the correct amount for net purchases, net income, accounts payable, and
inventory for Thomas Company as at December 31, 2014.View Solution:
The records of Thomas Company as of December 31 2014

ANSWER
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