1. Jag Co. purchased goods with a list price of $150,000, subject to trade discounts of 20% and 10% with no cash discounts allowable. How much should Jag Co. record as the cost of these goods?
2. Francis Company’s inventory of $1,100,000 at December 31, 2008, was based on a physical count of goods priced at cost and before any year-end adjustments relating to the following items.
a. Goods shipped f.o.b. shipping point on December 24, 2008, from a vendor at an invoice cost of $69,000 to Francis Company were received on January 4, 2009.
b. The physical count included $29,000 of goods billed to Sakic Corp. f.o.b. shipping point on December 31, 2008. The carrier picked up these goods on January 3, 2009.
What amount should Francis report as inventory on its balance sheet?