Home /
Expert Answers /
Accounting /
in-your-audit-of-jason-company-you-find-that-a-physical-inventory-on-december-31-2025-showed-merc-pa358
(Solved): In your audit of Jason Company, you find that a physical inventory on December 31, 2025, showed merc ...
In your audit of Jason Company, you find that a physical inventory on December 31, 2025, showed merchandise with a cost of $196,000 was on hand at that date. You also discover the following items were all excluded from the $196,000: 1. 2. 3. 4. 5. Merchandise of $22,000 which is held by Jason on consignment. The consignor is the Max Suzuki Company. Merchandise costing $23,000 which was shipped by Jason f.o.b. destination to a customer on December 31, 2025. The customer was expected to receive the merchandise on January 6, 2026. Merchandise costing $22,000 which was shipped by Jason f.o.b. shipping point to a customer on December 29, 2025. The customer was scheduled to receive the merchandise on January 2, 2026. Merchandise costing $56,000 shipped by a vendor f.o.b. destination on December 30, 2025, and received by Jason on January 4, 2026. Merchandise costing $41,000 shipped by a vendor f.o.b. shipping point on December 31, 2025, and received by Jason on January 5, 2026. Based on the above information, calculate the amount that should appear on Jason's balance sheet at December 31, 2025, for inventory. Inventory as on December 31, 2025 $
In your audit of Jason Company, you find that a physical inventory on December 31,2025 , showed merchandise with a cost of was on hand at that date. Youalso discover the following items were all excluded from the : 1. Merchandise of which is held by Jason on consignment. The consignor is the Max Suzuki Company. 2. Merchandise costing which was shipped by Jason to.b. destination to a customer on December 31,2025 . The customer was expected to receive the merchandise on January 6,2026 , 3. Merchandise costing which was shippod by Jason fo. b. shipping point to a customer on December 29. 2025. The customer was scheduled to receive the merchandise on January 2, 2026. 4. Merchandise costing shipped by a vendor to,b. destination on December 30,2025 , and received by Jason on Januafy . 5. Merchandise costing shipped by a vendor fo,b, shipping point on December 31,2025 , and received by Jason on danuacy 5,2026 Bared on the above information, calculate the amount that should appear on Jason's balance sheet at December 31, 2025, for inwentory: Inventory as on Decenber 31, 2025
Expert Answer
Apologies for the incorrect calculation in my previous response. Let's recalculate the adjusted inventory correctly. To calculate the adjusted inventory, we need to exclude the items that were not included in the $196,000 inventory on hand. 1. Consignment Inventory: $22,000 - Since this inventory is held by Jason on consignment for the consignor, Max Suzuki Company, it should not be included in Jason's inventory. 2. F.O.B. Destination Shipment: $23,000 - This merchandise was shipped by Jason f.o.b. destination to a customer on December 31, 2025, but the customer was expected to receive it on January 6, 2026. Therefore, it should not be included in Jason's inventory on December 31, 2025.