Accounting 9706 · AS & A Level · Reconciliation and verification

Reconciliation and verification — practice question

The business’s year end falls on 31 December 2021. Inventory was counted on 5 January 2022 and, at cost, was valued at $30000$. The following matters were then found. 1. Goods bought and received after the year end, with a cost of $1500$, had been included in the valuation. 2. Goods returned by a customer after the year end were also included. Their selling price was $900$ and this price contained a mark-up of $25\%$ during the year. 3. Some inventory items included at cost $500$ were damaged. After repairs costing $100$, they could be sold for $300$. Which inventory figure should be shown in the financial statements at 31 December 2021?

  • A$27480
  • B$27525
  • C$28275
  • D$29270

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