Question: Bonita Company asks you to review its December 31, 2017, inventory values and prepare the necessary adjustments to the books. The following information is given to you.
1. Bonita uses the periodic method of recording inventory. A physical count reveals $434,547 of inventory on hand at December 31, 2017.
2. Not included in the physical count of inventory is $24,827 of merchandise purchased on December 15 from Browser. This merchandise was shipped f.o.b. shipping point on December 29 and arrived in January. The invoice arrived and was recorded on December 3.