Answer:
The amount of inventory reported on balance sheet is $62,500
Explanation:
In this question, we are asked to calculate the value at which inventory will be reported on the balance sheet.
To do this, we can employ a mathematical approach.
Mathematically;
Amount of inventory reported in Balance sheet = physical inventory + goods sent on consigned + inventory purchased on fob destination
From the question, we can identify the following;
Physical inventory = $50,000
Goods sent on consigned = $10,000
Inventory purchased on fob destination = $2,500
The amount of inventory reported in balance sheet = 50,000 + 10,000 + 2,500 = $62,500
