Reference no: EM132044191
You are the Accountant at Tech World which sells computers. Your perpetual inventory was stated as $28,500 on the books at December 31, 2016. At the close of the year, a new approach for compiling inventory was introduced and apparently, the new accounts clerk under your supervision did not do a satisfactory inventory cut-off for the preparation of the financial statements for 2016. You are now reviewing the following events that occurred.
i. Computers shipped to a customer January 2, 2017, costing $5,000 were included in inventory at December 31, 2016. The sale was recorded in 2017.
ii. Computers costing $12,000 received December 30, 2016, were recorded as received on January 2, 2017.
iii. Computers received during 2016 costing $4,600 were recorded twice in the inventory account.
iv. Computers shipped to a customer in Trinidad December 28, 2016, FOB shipping point, which cost $10,000, were not received by the customer until January 4, 2017. These computers were included in the ending inventory of 2016.
v. Computers on hand that cost $6,100 were never recorded on the books.
Required:
Compute the correct amount for inventory at December 31, 2016.
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