The inventory ledger account balance on June 30, 2019, was $15,300, and net realisable value for...

The inventory ledger account balance on June 30, 2019, was $15,300, and net realisable value for each product line exceeded the cost. The cost of inventory on hand June 30, 2019, determined by physical count, however, was only $15,156. In investigating the reasons for the discrepancy, Boodja-Dooga Ltd discovered the following.

Goods costing $174 were sold for $220 (GST Inclusive) on June 26, 2019, on FOB destination (seller pays shipping) shipping terms. The goods were in transit on June 30, 2019. The sale was recorded on June 26, 2019, and the goods were not included in the physical count.
Goods costing $198 (GST Inclusive) were ordered on June 24, 2019, on FOB shipping point shipping terms. The goods were delivered to the transport company on June 27, 2019. The purchase was recorded on June 27, 2019, but, as the goods had not yet arrived, the goods were not included in the physical count.
Goods costing $280 held on consignment for Richmond Ltd were included in the physical count.

Required

Prepare any journal entries required on June 30, 2019, to correct any errors and to adjust the inventory account.

Date	Account	Post Ref	Debit	Credit
2019



	To record reversal of error in recording of sales of item on FOB Destination shipping terms



	To record items “sold” back into inventory



	To record inventory lost or missing

Solutions

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Solution:

ekkarill92 answered 1 year ago

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