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Question - Gordon Company's inventory at June 2011 was $75000 based on a physical count of goods priced at cost, and before any necessary year-end adjustment relating to the following:
-Include in the physical count were goods billed to a customer FOB shipping point on June 30, 2011. These goods had a cost of $1,500 and were picked up by the carrier on July 2, 2011.
- goods shipped FOB destination on June 28, 2011, from a vendor to Gordon were receive on July 3, 2011. The invoice cost was $2,500.
What amount should gordon report as inventory on its June 30, 2011, balance sheet?
a. $73,500
b. $74,000
c. $75,000
d. $76,500
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