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You are asked to travel to Milwaukee to observe and verify the inventory of the Milwaukee branch of one of...

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You are asked to travel to Milwaukee to observe and verify the inventory of the Milwaukee branch of one of your clients. You arrive on Dec 30 and find the inventory procedures have just been started. You spot a railway car on the sidetrack at the unloading door and ask the superintendent how he plans to inventory of the car. He responds, " we are not going to include the contents in the inventory";Later, you ask the bookkeeper for the invoice on the carload and the related freight bill. The invoice lists the various items, prices, and extensions for the goods in the car. You note that the carload was shipped Dec 24 from Albuquerque, f.o.b Albuquerque, and total invoice price of the goods in the car total $35,300. The freight bill called for payment of $1500. Terms were net 30 days. The bookkeeper affirms the fact that this invoice is to be held for recording in January.;A) Does your client have a liability that should be recorded at Dec 31?;B) Prepare a journal entry to reflect any accounting adjustment required.;C) For what possible reasons might your client wish to postpone recording the transaction?;HELP PLEASE !!!!;Thank you!

 

Paper#75686 | Written in 18-Jul-2015

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