Reference no: EM132429619

Question - Bloomay plc had a closing inventory figure in its general ledger at the 31^st July of £87,612. A physical stock count indicated that the actual inventory present at that date was £89,494. After an investigation you discover that;

1. Goods stored outside the warehouse had been included in both totals at the original cost of £826. The goods had been damaged in the rain and would cost £50 to clean up after which they could be sold for £500. Another bundle of goods outside the warehouse had not been spotted during the physical count. These were undamaged and had a cost of £1,235.

2. During the physical count one of the sheets had been over-added by £612.

3. Goods costing £418 sent to a customer on a sale or return basis had been recorded as sold on 31^st July even though Bloomay received them back in the post on 1^st August.

4. Free samples from a supplier had been included in the physical count at their normal cost of £190.

5. Bloomay had received goods costing £2,315 on 30^th July but because the staff were busy preparing for the stock count they had not produced a goods received note. But they did remember to include them in the physical count.

You are required to -

A - Calculate the correct amount for the closing inventory and reconcile this to the value of the physical stock count.

B - Suggest what you would do with any remaining difference between the physical and the accounting inventory that could not be reconciled following an investigation.