Reference no: EM132818124

The merchandise inventory in Sheridan Company was counted after the close of business on December 31, 2021, the company's year end. It was determined that the total cost of this inventory was $52,300. Sheridan wants to know if this is the correct amount that should be reported on the company's December 31, 2021, balance sheet or if an adjustment needs to be made for any of the following items:

1. The count included items costing $1,300that had been sold but are being held for alterations. The customers have paid in full for these items.
2. Sheridan Companyhas $4,100of merchandise held on consignment for a local designer. These items were included in the inventory count.
3. A shipment of inventory costing $2,650was received on January 2, 2022. It had been shipped by the seller on December 30, FOB shipping point. Freight charges are $310. These items were not included in the inventory count.
4. A second shipment of inventory costing $4,330was received on January 3, 2022. It had been shipped by the seller on December 31, FOB destination. Freight charges are $390. These items were also not included in the inventory count.

Problem 1: Determine the correct amount of Sheridan Company's merchandise inventory at December 31, 2021.