Reference no: EM132646298
The records of ABC Co. show the following:
a. Inventory in display shelves 100,000
b. Inventory stocked in warehouse 250,000
c. Inventory sold under a bill and hold arrangement, included in the stock of inventory in warehouse 20,000
d. Inventory purchased in installment sale, physical possession is obtained but the seller retains legal title to the goods until full payment of purchase price 30,000
e. Inventory pledge as collateral security for a bank loan 60,000
f. Inventory purchased under a law away sale plan, physical possession is not yet obtained until full payment of the purchase price 80,000
g. Inventory sold wherein ABC Co. is obligated to repurchase the inventory at a future date 10,000
Requirement:
Problem 1: Compute for the balance of inventory.