The following items were included in Opal Co.’s inventory account at December 31, 2006:
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|
Merchandise out on consignment, at sales price, including 40% markup on selling price |
$40,000 |
|
Goods purchased, in transit, shipped FOB shipping point |
36,000 |
|
Goods held on consignment by Opal |
27,000 |
By what amount should Opal’s inventory account at December 31, 2006, be reduced?
- $103,000
- $ 67,000
- $ 51,000
- $ 43,000