Reference no: EM132498205

Garcia Company identifies the following items for possible inclusion in the physical inventory. For each of the following 4 items, please indicate whether item should be included or excluded from the inventory taking.

i. Goods held on consignment from another company.

ii. Goods shipped on consignment by Garcia to another company.

iii. Goods in transit from a supplier shipped FOB destination.

iv. Goods shipped via common carrier to a customer with terms FOB shipping point.

Bradshaw Company has a balance in its Accounts Receivable control account of $13,500 on January 1, 2019. The subsidiary ledger contains three accounts: Brown Company, balance $6,000; Smith Company, balance $2,500 and Coco's Company. During January, the following receivable-related transactions occurred.

                                 Credit Sales                     Collections                          Returns

Brown Company             $15,000                         $6,000                              $ -0-

Smith Company              9,000                           4,500                                1,000

Coco's Company             8,500                           6,500                                -0-

Instructions:

Question (a) What is the January 1, 2019 balance in the Coco's Company subsidiary account?

Question (b) What is the January 31, 2019 balance in the control account?

Question (c) Compute the balances in the subsidiary accounts at the end of the month.

Question (d) Which January transaction would not be recorded in a special journal?