Using the following information to answer questions 10 and 11
Mason's Hardware Store prepared Ihe following analysis of cost of goods sold for the previous Ihree years: Net income for the years 2004, 2005, and 2006 was $70,000, $60,000, and $55,000,respectively. Since net income was consistently declining, Mr. Mason hired a new accountant to investigate the cause(s) for the declines.
The accountant determined the following:
申論題內容
4, The 2006 ending inventory did not include goods costing $4,000 that were shipped on December 29 to Sampson Plumbing Company, FOB shipping point. The goods were still in transit at the end of the year.