Help Save& Exit S Buffalo Company reported a December 31 ending inventory balanc

Question

Help Save& Exit S Buffalo Company reported a December 31 ending inventory balance of $412.000. The following additional information is also available: chased by Buffalo on December 28 and shipped FOB destination on that date. Buffalo did not receive the goods until January 2 of the following year The ending inventory balance of $412.000 included damaged goods at their original cost of $38.000. The net realizable value of the damaged goods was $10,000. Based on this information, the correct balance for ending inventory on December 31 is

Explanation / Answer

Inventory reported 412000 1 0 Rightly not included as goods were shipped FOB destination 2 -28000 Correct ending inventory 384000

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